Barramundi finds a partner for its Australian business
AQUACULTURE group Barramundi has entered into a strategic partnership with Wild Ocean Australia, which will enable it to develop its ambitious plans for expansion in Western Australia.
The Barramundi Group is based in Singapore, Australia and Brunei, farming the fish of the same name, also known as Asian sea bass. Last year, it had warned that its plans to develop up to 13 seawater sites in Western Australia might have to be shelved unless it could find a strategic partner. That partner, it has transpired, is Wild Ocean, which operates a seafood processing, value-adding and distribution business in Darwin, in the north of Australia. Wild Ocean also owns and operates the Darwin Fish Market retail outlet, which supplies the full range of Australian-only seafood products to the Greater Darwin region.
Barramundi Group has entered into a Letter of Agreement for the sale of 75% of the company’s stake in its Australia business, held under Marine Produce Australia Pty Ltd (MPA), for a consideration of AUS $1.6m cash (£0.9m) with a further earn out payment of AUS $3.4m (£1.9m) to be disbursed upon the approval of at least four of the 13 additional seawater site leases in the Kimberley region of Western Australia.
The agreement also includes Barramundi Group obtaining ownership of 34% of WOA’s shares, which allows the company to retain effective equity majority interest in MPA and gain access to a variety of Australian seafood products for its other markets.
Barramundi CEO Andreas von Scholten said: “Having had a protracted search for investors and a strategic Australian partner for MPA, we are happy to now enter into this arrangement with Wild Ocean.
“The structure of our relationship allows us to retain a meaningful presence and interest in Australia, while at the same time benefit from having a strong local Australian partner who will provide expertise, network and funding for the next phase of MPA’s growth. With our lease applications well underway, the future of sustainable, ocean-grown barramundi in Australia just got much brighter.”
Frank Norton, Director of WOA, said: “At Wild Ocean, we are excited that through the acquisition into MPA, we can fully unlock the potential of Australia’s only oceangrown barramundi… the strategic nature of this partnership is compelling and formidable.”