Barramundi Group announced today that the planned sale of its Australian operations, first announced in December 2022 on Marine Produce Australia (MPA) to Wild Ocean Australia, "has not been finalized" and that the business "will now undergo reconstruction."
Barramundi's stock exchange release was clear and brief but contained critical information. "The transaction has not been finalized, as the buyer has not been able to attract the necessary funding. The business will now undergo reconstruction."
The statement further explained that the company would put Rob Kirman and Rob Brauer of MPA in charge of administration on the same day the announcement was made, with the objective of "[assessing] the MPA Group's position with a view." Based on their results, the directors were to decide whether to undertake a restructuring or recapitalization of the MPA Group. Besides, they added that the administrators "intend to continue to operate the MPA Group on a 'business as usual' basis while exploring options for a sale and/or a recapitalization of the MPA Group."
Finally, the statement closed by explaining that the company will "in due course" release updates on the process. Barramundi Group's Singapore and Brunei operations remain unaffected.
Barramundi Group signed a Letter of Agreement on December 27, 2022, for the sale of the Company's 75% interest in its Australian business under MPA for a consideration of AUD 1.6 million in cash with an additional payment of AUD 0.4 million.
In addition, the conditions included Barramundi Group obtaining ownership of 34% of WOA's shares. The latter part was of particular interest to Barramundi because it allowed it to retain an effective majority stake in MPA and to access a wide range of Australian seafood products for its other markets.
Barramundi Group delivers premium quality fish worldwide, prioritizing sustainability. Their mission revolves around addressing the global protein gap by harnessing the potential of Barramundi. The Group operates with comprehensive in-house capabilities ranging from vaccine development, end-product innovation, and processing, to hatchery facilities. They operate ocean farms in Australia, Singapore, and Brunei.