December 14, 2006

Pan Fish to sell Scottish salmon farming operations

Pan Fish announced that it is to divest its Scottish salmon farming operations in 2007 to gain approval for the company's merger with Marine Harvest.

The company said the decision was taken in light of anti-trust concerns by the French authorities.

Pan Fish said that while it does not agree with the arguments put forward by the French Ministry of the Economy, it offers to divest Pan Fish Scotland was accepted.

The Ministry has now authorised the acquisition and final approval from the UK authorities is expected this week.

Pan Fish Scotland represents around four percent of Pan Fish's global planned production in 2007 thus its impact would be very limited on the group and the released capital will be used for debt reduction or invested for further growth.

One of the options currently being considered is that Pan Fish Scotland will run as a stand-alone operation. A meeting was held with the management of Pan Fish Scotland yesterday, following the final conclusion of the talks with the French authorities. Sources familiar with the news believes there is a good opportunity for the company to continue independently.

Pan Fish has also been approached by more than four companies interested in its Scottish operations, none of them Scottish.

Highland Council's vice-convener Michael Foxley has criticised developments. Foxley said it is ironic that it took the French regulators to force Pan Fish to take action, while the UK regulator approved it. He added it was unlikely that any independent Scottish company can buy out Pan Fish Scotland.

If the company is floated on the Norwegian stock exchange, it would probably be taken over by another Norwegian company, or it could remain under the control of Pan Fish itself, he said.