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AKVA group ASA: New strategic investor and targeted cooperation within land-based farming

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Israel Corp., a listed Israeli investment company that owns and invests in high quality companies with established managements and go-to markets, will take an appr. 15% stake in AKVA group ASA ("AKVA"), and partner with AKVA in attracting investments for land-based projects based on AKVA solutions and technology. Egersund Group AS will still hold the majority ownership in AKVA.

AKVA has today entered into an agreement with Israel Corp. (TASE: ILCO) that will result in Israel Corp. taking a 15% ownership stake in AKVA. The investment will be completed through (i) a private placement of 3,333,430 newly issued shares (corresponding to appr. 10% of the current outstanding shares in AKVA) at a subscription price of NOK 96.50 per share and an aggregate amount of NOK 321.7 million, and (ii) purchases of minimum 2,166,730 shares from existing shareholders in AKVA at a purchase price of NOK 96.50 per share and a total aggregate purchase amount of up to NOK 209.1 million (assuming 2,166,730 shares).

As part of the transaction, Israel Corp. will become entitled to appoint one board member in AKVA as long as it holds minimum 12% ownership position in the company. In addition, for a period of 24 months following the closing of the investment and as long as ILCO holds at least 12% of AKVA’s shares, ILCO shall be entitled to participate in any capital raising in such a manner that ILCO’s holdings in AKVA’s share capital shall be retained (pre-emptive rights).

AKVA and Israel Corp. have furthermore agreed to work towards establishing an investment platform for investments in land-based aquaculture facilities worldwide, using AKVA technology and solutions. The parties expect to contribute USD 10 million each to the platform or to land-based aquaculture projects worldwide, with the goal of raising further commitments from co-investors and partners to reach a total of up to USD 100 million.

Knut Nesse, CEO AKVA comments: "We are very pleased to welcome Israel Corp. as a long-term, strategic shareholder in AKVA. We believe that Israel Corp.’s global business experience and technology background will contribute to our goal to build a world-leading offering of technical & digital solutions within sea and land-based aquaculture. "This transaction will enable AKVA to accelerate the execution of our current strategy, to significantly step up our innovation agenda, and to transform our land-based strategy”.

Yoav Doppelt, CEO Israel Corp. comments: "We look forward to working with AKVA to accelerate growth in sustainable food production and further develop AKVA's technological leadership within the aquaculture industry. Our discussions with AKVA convinced us that AKVA is a leading global player in the aquaculture industry, and best positioned to capture the global land-based opportunity”.

To complete the transaction as outlined above, Israel Corp. has today launched an offer through its financial adviser DNB Markets directed to all AKVA shareholders to in aggregate purchase minimum 2,166,730 existing shares in AKVA at a price of NOK 96.50 per share. The maximum number of shares acquired by Israel Corp. will be determined by Israel Corp. at its sole discretion following expiry of the offer period, provided however that Israel Corp.’s aggregate holding of shares in AKVA upon completion of the offer and the private placement of new shares shall not exceed 19.99%. AKVAs' main shareholder Egersund Group AS has committed to participate in the offer on a pro rata basis and has also agreed with Israel Corp. that it will provide a back-stop facility of up to 2,166,730 shares to enable Israel Corp. to reach a minimum holding of 15% on a fully diluted basis. Further information about the offer terms and settlement of the offer will be posted on www.dnb.no/emisjoner and on AKVA's website.

The shareholders in AKVA are invited to attend an Extraordinary General
Meeting to approve the issue of new shares to Israel Corp. and other matters necessary to complete the transaction to be held at 17:00 hours (CEST) on 20 October 2021 at Svanavågveien 30, Egersund, Norway. Please find enclosed the Notice of the Extraordinary General Meeting, including a detailed agenda, attendance form and proxy form.


Dated: 29 September 2021
AKVA group ASA

Web: www.akvagroup.com

CONTACTS:
Knut Nesse - Chief Executive Officer
Phone: +47 51 77 85 00
Mobile: +47 91 37 62 20
E-mail: knesse@akvagroup.com

Ronny Meinkøhn - Chief Financial Officer
Phone: +47 51 77 85 00
Mobile: +47 98 20 67 76
E-mail: rmeinkohn@akvagroup.com

***

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act. The information was submitted for publication by Ronny Meinkohn (CFO) (contact details as set out above) on 29 September 2021 at 07:30 CET.

About AKVA group ASA

AKVA group ASA is a global technology and service partner that deliver technology and services that helps solve biological challenges within the aquaculture industry. Good operational performance and fish welfare ensures sustainability and profitability for the customer. This is the premise for everything we deliver, from single components to services and complete installations. In-depth aquaculture knowledge, extensive experience and a high capacity for innovation characterizes and enables us to deliver the best solutions for both land-based and sea based fish farming.

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