SalMar ASA

M&A Activity • Aug 26, 2021

SalMar ASA: Enters partnership with Aker to create world leading offshore farming operations

SalMar ASA: Enters partnership with Aker to create world leading offshore farming operations

SalMar ASA ("SalMar") announced today that it has entered a strategic

partnership with Aker ASA ("Aker") to establish a global offshore aquaculture

company. The new joint company, SalMar Aker Ocean AS ("SalMar Aker Ocean"), will

operate within offshore fish farming, including offshore and semi-offshore,

combining Aker and SalMar's industry experience, leading competence in salmon

production, software, and cleantech to create the world's most reliable and

intelligent offshore farming operations with the highest requirements for fish

welfare and a zero-emissions value chain ambition.

"SalMar's focus on the open ocean marked the start of a new era in the seafood

industry. We are very pleased to be partnering with a strong industry partner

like Aker. Together, we will be at the forefront of ensuring sustainable growth

on the salmon's terms, utilizing the potential of the ocean to produce healthier

food, deploying digital technologies, cleantech, and using superior supplier

industry capabilities at a critical time for ensuring sustainable food

production in the long-term. Together, we can take the next technological leap

for offshore farming, with a global ambition" said Gustav Witzøe, CEO of SalMar.

SalMar and Aker through its wholly-owned subsidiary Aker Capital AS, will

eventually own 66.6 per cent and 33.4 per cent, respectively, of the joint

company, SalMar Aker Ocean, which will comprise SalMar's interests in its semi-

offshore and offshore farming operations. Aker will contribute up to NOK 1.65

billion in cash in three tranches. The company will continue the ongoing work

within testing, learning, researching, and developing offshore farming

operations, including through the world's first operating offshore fish farm,

Ocean Farm 1; and the technology of the innovative Smart Fish Farms to be

positioned in offshore Norwegian waters, and eventually internationally. Norway

is currently at the forefront in developing this technology and industry

worldwide. Ocean Farm 1 and Smart Fish Farm have both been developed with a

unique interdisciplinary partnership between SalMar - building on more than 30

years of experience - and world-leading players in Norway within aquaculture,

offshore and R&D. Olav Andreas Ervik will head the company as CEO and the board

will consist of six members, including Gustav Witzøe, Atle Eide, Kjell Inge

Røkke and Øyvind Eriksen.

The new offshore technology opens vast new areas for fish farming with optimal

biological conditions for the salmon. SalMar Aker Ocean will continue to develop

the offshore technology to ensure production on the salmon's terms, meet the

highest requirements in respect of fish welfare and minimize the environmental

footprint.

"The aquaculture industry is at the cusp of a new, more sustainable era, opening

up for a new resource base and with green production," said Øyvind Eriksen,

President and CEO of Aker. "The new company combines Aker's leading industrial

track record within offshore operations with SalMar's history as one of the

world's largest and most efficient producers of farmed salmon. We also share a

vision for the potential of software, data, and analytics, and we believe we can

join forces to take the next step to develop ocean farming, including using

technology and joint industrial capabilities to protect ocean health, fish

welfare and promote sustainable growth."

Over two production cycles, 10,000 tonnes of salmon have been produced at Ocean

Farm 1, a full-scale pilot facility based on world-class Norwegian aquaculture

and offshore technology. The two production cycles have shown strong biological

results and has given valuable insights in respect of future development. The

construction and operation of the pilot, combined with Aker's leading

engineering, offshore operation, and fabrication capabilities, gives SalMar Aker

Ocean an unparalleled position in the next phase of developing offshore fish

farming on a global scale.

To further accelerate growth, the parties will immediately initiate a project to

develop a next-generation semi offshore unit, with an aim at reaching an

investment decision for a new production unit as soon as possible.

Based on the experience from Ocean Farm 1, SalMar Ocean has developed the Smart

Fish Farm technology, with an ambition to build a series of units for offshore

production. SalMar Aker Ocean will continue this work to streamline and

digitalize construction and operation processes and will jointly seek approval

for locations and licenses offshore, initially within the Norwegian Economic

Zone.

SalMar Aker Ocean has an ambition to develop a world leading company with global

presence. The company will initially focus on establishment of offshore fish

farming in Norwegian waters, which will require establishment of a regulatory

framework for offshore fish farming. SalMar Aker Ocean will collaborate with

Norwegian regulators, the aquaculture industry, and other interested parties for

the establishment of such framework. In the longer term, SalMar Aker Ocean will

target growth in international markets building on experience and know-how from

Norway.

The establishment of the joint company is subject to customary closing

conditions, and closing is expected in Q1 2022. The parties aim for listing of

SalMar Aker Ocean on a relevant stock exchange within one to two years' time.

SalMar presents results for the second quarter 2021 on Thursday 26 August 2021

at 12:00 CEST in the auditorium at Sparebank 1 SMN offices in Søndre Gate 4 in

Trondheim. Representatives for both companies - Gustav Witzøe, Leif Inge

Nordhammer, Olav Andreas Ervik, Kjell Inge Røkke and Øyvind Eriksen - will,

immediately following the results presentation, jointly hold a presentation

outlining the new collaboration, and will be available for answering questions.

This will be done in Norwegian.

Given current disease prevention measures due to Covid-19, it will be limited

number of seats available. For registration, please contact

corporateaccess@sb1markets.no (mailto:corporateaccess@sb1markets.no)

For further information, please contact:

Håkon Husby, Head of Investor Relations

E-post: hakon.husby@salmar.no (mailto:hakon.husby@salmar.no)

Tel: +47 936 30 449