P/F Bakkafrost (OB:BAKKA) made a mandatory offer to acquire a 31.39% stake in The Scottish Salmon Company PLC (OB:SSC) for approximately NOK 1.7 billion on September 25, 2019. The shares will be purchased at a tender price of NOK 28.25 per share in cash. In a related transaction, P/F Bakkafrost (OB:BAKKA) signed a binding agreement for the acquisition of a 68.6% stake in The Scottish Salmon Company PLC (OB:SSC) at a price of NOK 28.25 per share. The transaction and any subsequent mandatory tender offer will be funded via a mix of debt and equity, including an accelerated book build offering of approximately 15% of share capital and a directed share issuance of approximately 5% of share capital to Northern Link Ltd and an additional debt facility. In case shareholders do not approve the issue of additional Bakkafrost shares, Bakkafrost will use an additional bank facility to settle the share loan in cash and Northern Link will receive a cash consideration for an amount equivalent to the approximate 5% share issuance they would have otherwise received. As on October 8, 2019, Bakkafrost completed the acquisition of 68.6% stake in SSC and disclosed that after including the shares of SSC it purchased in the market, Bakkafrost owns 150.97 million shares representing approximately 77.8% stake in SSC. Bakkafrost will make a mandatory cash offer for the remaining shares in SSC. If Bakkafrost becomes the owner of 90% of more of the shares, then Bakkafrost will have the right to resolve a compulsory acquisition of the shares in SSC. The formal offer is expected to be launched no later than 31 October 2019. As of November 8, 2019, the offer will commence on November 11, 2019 and will expire on December 9, 2019, subject to possible extensions of up to 2 weeks. The offer document has been approved by the Oslo Børs. As of December 1, 2019, the board of The Scottish Salmon Company states that offer is fair and recommends shareholders to accept the offer. The board's recommendation is unanimous. P/F Bakkafrost (OB:BAKKA) has entered into binding agreements relating to two fully secured five-year credit facilities of in aggregate of NOK 3.489355 billion to partly fund acquisition of shares in the Scottish Salmon Company.

DNB, Goldman Sachs International and Nordea acted as the financial advisors to Bakkafrost and DC Advisory acted as financial advisor and Aabø-Evensen & Co Advokatfirma AS and CMS acted as legal advisors to SSC.