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Norway increases stake in Cermaq

June 25
3:47 PM 2013
Norway Fishing
(Photo : Reuters)
The image is a fishing boat at the Atlantic Ocean.

The state of Norway had spent nearly 1.56 billion crowns or US$254 million to increase its shareholding in fish farmer Cermaq to 60% overall. This comes days after fighting off a US$1.7 billion hostile bid from its larger local competitor, Marine Harvest.

The latest purchase consists of 14.46 million shares priced at 108 crowns per share. The latest shareholdings inceased from 43.5% to 59.17%. 

Last Friday, shipping tycoon John Fredriksen's Marine Harvest had presented its cash and shares offer pricing each share at 104 crowns. The bid though was not passed as it failed to complete the mandatory 33.4% vote of shareholders. In a similar move, the company also divested its 3.33 million shares in Cermaq at 105.33 crowns per share. The divestment had retained 1.84% of Cermaq.

Marine Harvest is the largest fish farmer in the world. The company had sought to purchase Cermaq in order to consolidate the industry while the demand worldwide increases. This though was met with stiff opposition, primarily from the state itself.

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