September 28, 2023

Investment fund acquires US$72 million stake in Icelandic salmon land farm

Haf Investments, a recently established investment fund, has acquired a substantial ISK 10 billion (~US$72 million; ISK 100 = US$0.72) stake in Thor Landeldi, a salmon business in Iceland, which aims to provide the necessary capital for a new land-based salmon farming project in the region, Fish Farmer reported.

The agreement grants Haf Investments a controlling 53% ownership in Thor Landeldi. The primary objective of this venture is to facilitate the establishment of a state-of-the-art facility with a production capacity of 20,000 tonnes. The proposed location for this ambitious project is near Þorlákshöfn, situated on the southern coast of Iceland. Importantly, this area is strategically chosen due to its proximity to other land-based salmon farming initiatives currently underway.

Haf Investments, initiated earlier this year, boasts a robust financial foundation, with funding amounting to a significant US$71 million. This fund is dedicated to exploring and investing in opportunities within the realm of ocean-related ventures. Notably, the fund's investment potential extends even further when considering co-investment authorisations held by shareholders, which could increase its investment capacity to an impressive range of US$200 million to US$350 million.

Noteworthy investors participating in this project include Norwegian entrepreneurs Frank Yri, chief commercial officer of Seaborn, and Alex Vassbotten, chairman of the Board of Seaborn.

Thor Landeldi has secured a substantial 20.3-hectare site at Laxabraut, positioned west of Þorlákshöfn. This location is strategically chosen due to its abundant availability of fresh and sea water, essential resources for salmon production on land.

The newly acquired capital will be channelled into financing the initial phase of the project, involving the construction of a hatchery. The project is currently undergoing an environmental assessment, and it is expected to receive its first salmon eggs in the hatchery by autumn 2024.

Leading this ambitious project are Jonatan Thordarson, Thordur Thordarson, and Halldor Ragnar Gislason, all of whom possess extensive expertise in various facets of fish farming. Jonatan Thordarson, an aquaculture specialist with over two decades of experience in fish farm operations and development, served as the Head of Aquaculture at Ice Fish Farm for a decade between 2012 and 2022. Thordur Thordarson, previously a lawyer and manager at Fiskeldi Austfjarda from 2012 to 2023, brings valuable expertise to the project. Halldor holds an M.Sc. in aquaculture from Scotland and most recently contributed to the fisheries division of Arion bank.

For this transaction, Arctica Finance represented the seller, while Deloitte acted as the advisory entity for IS Haf Investment.

-      Fish Farmer