Danske Bank med kommentar til SalMar’s kapitalrejsning:
Yesterday afternoon, SalMar announced a contemplated private placement, aiming to issue up to 4.5m new shares (~4% of outstanding). The transaction was closed later in the evening, as the company successfully raised NOK2.71bn in new equity. Management indicated that the proceeds will be used for organic and inorganic growth opportunities across the value chain, including offshore farming.
Our impression has been that SalMar was already well-capitalised, even after the NOK2.3bn dividend to be paid later this month. As such, we did not anticipate the transaction, and we do not believe it was expected by the market. This would support the notion that management has clear investment objectives at hand. Nevertheless, the transaction was undoubtedly supported by strong equity markets, with the share price having risen 29% year-to-date, reaching an all-time-high of NOK651 prior to yesterday’s announcement.
The majority owner, Kverva, had subscribed to its 52.46% proportional share of the capital raise prior to the transaction, with a minimum capital contribution of NOK300m. The initial announcement stated that Kverva would accept some dilution in case of oversubscription, but would in any event retain above 50% ownership. Following the close of the transaction, Kverva holds 50.88% of the shares in SalMar.
We see the capital raise as credit positive. Besides strengthening the balance sheet, the transaction marks yet another proof of the company’s access to capital markets, as well as proof of support from the majority owner.
