As no bidder was prepared to meet the asking price by the deadline, Marine Harvest shareholders last week at an extraordinary general meeting voted to receive shares in Pan Fish Scotland’s replacement, Lighthouse Caledonia, and to get a reduced dividend payout, IntraFish has learned.

Under the terms of the spin off, Marine Harvest’s proposed dividend will be reduced from NOK 0.125 (€0.015/$0.022) a share to NOK 0.095 (€0.011/$0.017), while the dividend will be distributed in the form of Lighthouse Caledonia shares.

For every 100 shares in Marine Harvest, shareholders will receives one share in Lighthouse Caledonia valued at NOK 9.50 (€1.17/$1.71).

The company’s worth is put at NOK 330 million (€40.7 million/$59.7 million), but it has debt of NOK 450 million (€55.5 million/$81.4 million), making the total value NOK 780 million (€96.2 million/$141.1 million), according to DnB Nor analyst Klaus Hatlebrekke.

This summer, Leroy and Salmar offered NOK 800 million (€98.7 million/$144.7 million) for the business, but following a due diligence process the potential suitors concluded the price was too high.

Hatlebrekke said he thought the companies might have bought the company for nearer NOK 600 million (€74 million/$108.5 million).

Lighthouse Caledonia will be Scotland’s third-largest fish farming company, with annual production of 24,000 tons -- around 18 percent of the United Kingdom’s total salmon production.

The old Pan Fish Scotland covered 13 percent of production with 17,000 tons. Marine Harvest created Lighthouse Caledonia by adding on some of its own facilities and those of Fjord Seafood Scotland.

It leaves Marine Harvest as the biggest producer in Scotland with 32,000 tons, followed by Leroy- and Salmar-owned Scottish Seafarms at 25,000 tons.

Hatlebrekke said he currently doesn’t hold out any great hopes for the Lighthouse Caledonia business, given it's been a poor performer for many years and others have tried to sort it out, using different methods, without success.

“At today’s level of costs, it would fall flat on its face. It will probably be bought by a company that believes it can manage to reduce company costs, just as long as the asking price is low enough,” said Hatlebrekke. “New owners and new management have to reduce the costs or fetch better prices for their salmon than what salmon is currently selling for on the spot market.”

Former Pan Fish Scotland uncoupled from Marine Harvest