On Monday, it became known that the government is pulling the emergency brake to prevent the sale of the private property Søre Fagerfjord on Svalbard to unwanted actors. This through a decision in the Security Act § 2–5. On the same day that the decision was made by the King in Council, and the owners were informed of the decision, the government submitted a bid for the property. It shows documents that news has seen. 20 million “On behalf of the state at the Ministry of Trade and Fisheries, a new offer is hereby made to buy the property Søre Fagerfjord from the company AS Kulspids for NOK 20 million.” This is what government lawyer Fredrik Sejersted writes in a letter to Aktieselskabet Kulspids, which owns the property Søre Fagerfjord. The offer was valid until Wednesday 10 July at 12.00, and is equal to what the state has previously offered to the owners of the property. Sejersted has for some time communicated with the owners of the property, on behalf of the Ministry of Industry and Fisheries. This primarily with lawyer Per Kyllingstad, who has represented the owners in the sale. The bid is far below the company’s sale price of 300 million euros, which Minister of Business Cecilie Myrseth (Ap) has previously been clear that they will not pay. – We are willing to make contact with the seller and negotiate within a realistic framework, Myrseth told news in May. 300 million euros corresponds to just under 3.5 billion Norwegian kroner at today’s exchange rate. OFFER: On Tuesday, government attorney Fredrik Sejersted presented the government’s bid for AS Kulspids. Photo: Hallvard Norum / news Rejection In response to the government attorney on Wednesday last week, which news has also seen, Kyllingstad rejected the offer from the government. Furthermore, he refused the government’s wish for negotiations. – The shareholders in AS Kulspids have had an open approach to the Norwegian authorities, and also offered the state to buy the shares in the company at the time. This was refused through an offer to buy for what appeared to be a symbolic sum. This still seems to be the state’s position, writes Kyllingstad in the letter, before he continues: – In that sense, we hardly consider it expedient to have any further meeting on the occasion of the case, all the while the state seems rather stuck. Per Kyllingstad has not responded to news’s requests for an interview on Monday. KULPIDS: Lawyer Per Kyllingstad represents the owners of the property Søre Fagerfjord in Svalbard. Kyllingstad did not respond to news’s inquiries on Monday. Photo: Terje Bendiksby / NTB Kyllingstad’s letter on Wednesday was understood by the government attorney, in a letter dated Thursday 27 June, as a rejection of both the offer and the negotiation meeting. “This means that the decision of 25 June (the decision under the Security Act § 2-5, journal note) stands firm, and from the state’s side it is assumed that the company Kulspids and the current owners will deal correctly with the requirements and restrictions presents”, wrote government attorney Sejersted. Sejersted further specified that the current owners took over the shares in the company for a much lower sum in the period around 2007. He himself believes that they “never could have had justified expectations of achieving a sale price which clearly assumes that the property is intended to be used contrary to the conservation regulations”. The government attorney points out that, despite Wednesday’s rejection of their bid, the state is “at any time” open to negotiations within what they describe as “realistic frameworks”. National Park REJECTION: The government’s bid of 20 million for Søre Fagerfjord in Svalbard ended in rejection. Photo: Kulspids The price tag of 300 million euros has made several people react. – I would probably be surprised if someone pays 3.5 billion, said lawyer at Elden Advokatfirma, Arnt Angell, in May. In 2014, he assisted the sellers of the private property Austre Adventfjord on Svalbard. A property the state bought for 300 million two years later. However, there are clear differences between the property Angell sold in 2016 and the one AS Kulspids is now trying to sell. The 217.6 square kilometer Austre Adventfjord is located close to Longyearbyen, and it is permitted to extract minerals in the area. The 60.9 square kilometer property Søre Fagerfjord, on the other hand, is around 40 kilometers from Longyearbyen, and is located in Sør-Spitsbergen National Park. It is only permitted to arrive at the property on foot or by boat. The location in a national park means that it is neither permitted to search for minerals nor to carry out mining in the area, nor to build anything. This is completely contrary to the advertising of the property, where it is advertised as having “significant geopolitical, scientific and environmental significance”. – It is difficult to see that anyone can successfully challenge that protection, Angell said further. Hello! Thank you for reading the matter! Do you have any tips for this case or similar cases? Feel free to send me an email! Published 01.07.2024, at 10.34 Updated 01.07.2024, at 10.57
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The government with a bid for the property Søre Fagerfjord in Svalbard – news Troms and Finnmark
