Føroya Banki has now sold the aquaculture group Vestlax, which the Bank took
over in 2003. Føroya Banki has entered into an agreement with P/f Vestlax
Holding, a company currently under establishment, concerning the sale of P/f
Vestlax for the amount of DKK 113.5m.
The sale will bring Føroya Banki a profit of DKK 100m and the Bank therefore
raises its profit guidance for 2008 from DKK 165-185m to DKK 265-285m before
value adjustments and tax.
Some of the largest companies on the Faroe Islands are behind the establishment
of P/f Vestlax Holding:
P/f Havsbrún, 20.96%
P/f T.F. Holding, 12.57%
P/f Føroya Lívstrygging, 12.57%
Framtak, 12.57%
P/f Bakkafrost Holding, 4.86%
P/f Norðoya Íløgufelag, 1.68%
P/f Føroya Banki, 34.79%
Føroya Banki will initially be involved as co-owner of P/f Vestlax Holding but
intends to sell its remaining holdings as soon as possible.
Vestlax is today a well-managed aquaculture corporation with an annual
production capacity of approx. 13,000-15,000 tons.
The group's annual profit was DKK 15.3m last year. Equity was DKK 38.8m and the
balance was DKK 252.8m
The group was initially established in 1986 but entered financial turmoil in
2002 caused by low salmon prices on the international market and the
ILA-disease.
Føroya Banki subsequently restructured the group, and Vestlax resumed
aquaculture activities in 2005.
The Vestlax group is comprised of P/f Vestlax, P/f Alilaks, P/f Vestsalmon, P/f
Sveipur and P/f 15. juni 2004. P/f Vestlax is also a minority shareholder of
P/f Fossáaling.
We are pleased that Vestlax, which the Bank took over in 2003, now has a solid
operation. That is why we as planned can sell the company with considerable
profit, which allows us to raise our profit guidance for 2008, Janus Petersen,
CEO of Føroya Banki, says.
Føroya Banki, Corporate Finance negotiated the sale of P/f Vestlax.
Further information: Súni Schwartz Jacobsen, managing director of Føroya Banki,
tel: (+298) 330 330.
