Shares in Måsøval surged on Thursday after the company’s controlling shareholder launched a strategic review of its ownership.
The stock rose as much as 30 percent at the open and was last trading up 26.5 percent at NOK 29.10, compared with a previous close of NOK 23.00.
The move opens the door for consolidation in the Norwegian salmon sector.
“With licences in production areas 5 and 6, Mowi, SalMar and Lerøy Seafood Group are all relevant suitors,” analysts at Fearnley Securities wrote in a research update.
Analysts at Pareto Securities said SalMar and Mowi stand out as the most likely buyers, although Lerøy could also have interest.
“Måsøval has struggled operationally and has an overly strained balance sheet, which has led to a poor performing stock in recent years,” analysts Henrik Longva Knutsen and Øyvind Vangsnes wrote.
However, they said the current valuation may underestimate the underlying assets.
“Our base scenario for SOTP suggests a fair value of NOK 34 per share, around 50 percent upside from Wednesday’s price,” they wrote.
The share rally followed news that Heimstø, the investment company of the Måsøval family and owner of around 70 percent of the company, has initiated a strategic review of its stake.