2010-03-04

Approval of Initial Public Offering and Listing on Oslo Børs by the Board of Directors

Announcement no. 2/2010       Glyvrar,  4 March 2010

NOT FOR DISTRIBUTION IN WHOLE OR IN PART IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

The board of directors of P/f Bakkafrost ('Bakkafrost' or the 'Company') has approved the initial public offering (the 'IPO') expected to be completed in connection with listing of the Company`s shares on Oslo Børs. The terms and conditions of the IPO will be presented in the listing and offering prospectus (the 'Prospectus'), which is expected to be published no later than 5 March 2010, depending on the prior approval by Oslo Børs.
The IPO will include issuance of new shares intended to raise gross proceeds of about NOK 82 million. Further, the IPO will comprise minimum 14,649,752 and maximum  18,645,271 secondary shares, plus a potential over-allotment of up to 1,836,768 secondary shares. P/f Føroya Banki's ('Føroya Banki') part of the secondary shares offered is 14,649,752.
The IPO is divided into (i) an institutional offering in which Offer Shares are being offered to institutional investors and professional investors in reliance on Regulation S under the Securities Act and to qualified institutional buyers (QIBs) in the United States in reliance on Rule 144A under the Securities Act, (ii) a retail offering in which Offer Shares are being offered to the public in Norway and (iii) a retail offering in which Offer Shares are being offered to the public in the Faroe Islands.
The Board and Føroya Banki as principal selling shareholder has set a non-binding indicative price range of the IPO of between NOK 27 and NOK 31 per offer share, implying a market capitalization of Bakkafrost prior to the proceeds from the issuance of the new shares of between approximately NOK 1,249 million and NOK 1,433 million. The final offer price is to be determined following a book-building process on such terms as set forth in the Prospectus. The final offer price may be set above, below or within the indicative price range.
Prior to the IPO, the number of issued shares is 46,250,000, each of par value of DKK 1. The final number of shares to be issued by the Company and sold by the selling shareholders and the offer price will be determined by the board and the principal selling shareholder in collaboration with the Managers after completion of the book building period, expected to run from and including 8 March 2010 to 23 March 2010 at 17:30 CET. The application period for the retail offering in Norway and the Faroe Islands is expected to run from and including 8 March 2010 to 23 March 2010 at 14:00 CET (13:00 Faroese time). Subject to the approval by Oslo Børs of the listing application and the Prospectus and also subject to extension of the book building period and the application period, it is expected that trading in the shares on Oslo Børs will commence on or about 26 March 2010.
Bakkafrost is the largest salmon farmer on the Faroe Islands, with a total production of 30,650 tonnes gwt in 2009. The Company operates licenses on 14 fish farming sites located in 13 different fjords. The Company has primary processing in Klaksvík and Kollafjørð and secondary processing (VAP) in Glyvrar.
Nordea Markets and Føroya Banki have been appointed as Joint Lead Managers and Joint Bookrunners in the Offering and Listing of Bakkafrost. Carnegie ASA has been appointed as Joint Lead Manager. Wiersholm and Advokatskrivstovan act as legal advisors to Bakkafrost.
The Prospectus will be available at the offices of Bakkafrost, Føroya Banki, Nordea Markets and Carnegie and at the respective parties' web pages (www.bakkafrost.com, www.foroya.fo, www.nordea.no/bakkafrost, www.carnegie.no)

Contacts:
Regin Jacobsen, CEO of P/f Bakkafrost: +298 23 50 01 (mobile)
Teitur Samuelsen, CFO of P/f Bakkafrost: +298 23 51 11 (mobile)

Disclaimer:
This announcement is not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan. This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the 'Securities Act').
The Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.
The subscription or purchase of Bakkafrost shares are subject to specific legal or regulatory restrictions in certain jurisdictions. Bakkafrost or the managers assumes no responsibility in the event there is a violation by any person of such restrictions.
This announcement is an advertisement. It is not a prospectus, disclosure document or offering document and does not purport to be complete. Nothing in this announcement should be interpreted as a term or condition of the IPO. Investors should not subscribe for, purchase, otherwise acquire, sell or otherwise dispose of Bakkafrost shares except on the basis of  information in the Prospectus to be published by the company in due course in connection with the IPO which will contain further information relating to the company as well as a summary of the risk factors to which any investment is subject. This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to acquire any securities offered by any person in any jurisdiction in which such an offer or solicitation is unlawful.
The distribution of this announcement and/or the Prospectus into jurisdictions other than Norway and the Faroe Islands may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

P/F Bakkafrost
Bakkavegur 9
PO Box 221
Fo-625 Glyvrar
Faroe Islands
Tel. +298 405000
Fax. +298 405009
Bakkafrost@bakkafrost.com
www.bakkafrost.com