New CEO - focusing Aker Seafoods in two companies


Thomas Farstad has been appointed as the new president and CEO of Aker Seafoods
ASA, and the board has resolved to continue developing the seafood group
through two independent businesses. 

“We're very satisfied with the appointment Mr Farstad as chief executive,” says
Aker Seafoods chair Frank O Reite. “He has detailed knowledge of the seafood
industry and leadership experience from listed companies. These are important
qualifications for the job of improving our profitability.” 

Mr Farstad is currently the post of acting chief executive in Marine Harvest,
and will be joining Aker Seafoods during the course of the year. 

“Liv Monica Stubholt has done an impressive job as our acting chief executive,”
says Mr Reite. “She and her management team, together with our union
representatives, have conducted a thorough process to identify improvement
areas. The outcome is that the group will be developed as two independent
companies.” 

Cultivated as two companies
Processing and sales will be demerged into a separate company under the name
Norway Seafoods AS. At its creation, this company will be wholly owned by Aker
Seafoods. The transaction takes effect from the end of June/beginning of July. 

Norway Seafoods will be under the leadership of Thomas Farstad.

Harvesting will remain a separate business area in Aker Seafoods under the
leadership of Trond Williksen, currently executive vice president for
harvesting in the group. This business comprises 12 trawlers in Norway and two
in Spain, with a total of approximately 400 employees. Operating revenues are
about NOK 600 million per year. The restructuring does not impact delivery
obligations for trawlers and other licensing terms. 

Agreements between the two companies will be entered into at market terms and
employee rights will be maintained in each of the companies. Furthermore, the
Norway Seafoods workforce will have boardroom representation in Aker Seafoods. 

Focusing the business through two companies does not in itself generate any
need for additional financing, however Norway Seafoods will be financed on a
stand alone basis. 

Norway Seafoods
The restructuring will ensure that Norway Seafoods is established as
market-oriented processing business which provides the basis to participate in
the necessary restructuring of the Norwegian seafood processing industry.
Strategic collaboration with new partners and investors will be considered and
a stock market listing could be relevant for Norway Seafoods in the longer
term. 

Norway Seafoods will be responsible for operation of 11 factories and fish
receiving facilities in Norway, three facilities in Denmark and two in France.
The company will have about 1 200 employees in all, including 670 in Norway,
and operating revenues in excess of NOK 2 billion per annum. 

Transactions related to the creation of Norway Seafoods are being implemented
at fair value, which is expected to correspond to book values at group level.
Employees and assets related to the harvesting business will be retained in the
harvesting company Aker Seafoods. That applies to trawlers, premises with an
associated activity obligation, and other items significant for maintaining
harvesting rights. 

Employees, production equipment and all assets associated with onshore fish
processing and sales, including premises without significance for maintaining
harvesting rights, will be transferred to Norway Seafoods. Premises with an
activity obligation will be leased from the harvesting company. 

“This restructuring will place us in a better position to strengthen our
fresh-fish strategy, and thereby increase deliveries from the coastal fishing
fleet to the factories,” says acting chief executive Stubholt. “I also expect
the new company to increase its share of high-margin products. 

Formalisation of changes to bank financing and approval of the new operating
company by the Norwegian Food Safety Authority (‘Mattilsynet') are expected to
be finalised in the near future. 

Further information from:
Frank O Reite, chair, Aker Seafoods ASA, tel: +47 91 58 06 04
Liv Monica Stubholt, acting chief executive, Aker Seafoods ASA, tel: +47 91 65
05 23 
Trond Williksen, executive vice president harvesting, Aker Seafoods ASA, tel:
+47 91 63 01 73 
Gunnar Aasbø, chief financial officer, Aker Seafoods ASA, tel: +47 91 63 01 81


Thomas Farstad in brief:
Thomas H Farstad (39) has been acting chief executive of Marine Harvest ASA
since March, and a member of its corporate management team since 2006. He was
initially responsible for strategy and business development in 2007-08, and
then held operational responsibility for Marine Harvest's facilities in Canada,
Scotland, Ireland and Asia, as well as some development plants in Norway. 

Mr Farstad worked in 2003-06 for Fjord Seafood ASA, which became part of Marine
Harvest in 2006. He was chief executive of Fjord Seafood Norway AS (2003-06),
and before that vice president for strategy and business development. 

Earlier appointments include service as a consultant with McKinsey & Company
(1999-2004) and as a project engineer with Aker Maritime (1997-1999). Mr
Farstad holds an MBA from Insead in France and an MSc from the Massachusetts
Institute of Technology (MIT) in the USA. 

He is due to take over as president and CEO of Aker Seafoods ASA during 2010,
at an annual salary of NOK 2.25 million.