US-based seafood and meat group Sino Agro Food which operates in China, has announced the completion of the transfer of aquaculture assets into its Hong Kong-based Tri-Way industries subsidiary.
This is as a precursor to its carve out and subsequent IPO, which has been a long time in the planning. The company first detailed its desire to list in 2014.
The aquaculture assets include prawn farms of the Zhongshan Aquaculture MegaFarm and the Zhongshan A Power Prawn Culture Farms Development Company, the latter of which runs a prawn and shrimp hatchery and nursery.
Meanwhile, the company says it has made “significant inroads” into securing debt financing for working capital for the Tri-Way project, with the registration of legal and commercial documents due to be completed today.
Earlier this year the company reported a fall in its sales and profits, partly down to a weaker year on year performance from its aquaculture business. Net income dropped 19% to US$91.8, while gross profit was down by 14% at US$111.2m.
In December the company said that meetings with investment banks in Hong Kong have strengthened its view that “structural changes can unlock great shareholder value.”
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