Business
Temasek-backed fish farm sold at fraction of cost amid owner’s financial woes
Apollo Aquaculture Group’s high-tech fish farm in Lim Chu Kang, originally valued at S$65 million, has been conditionally sold to HPC Builders and Aquachamp for S$3.5 million. The sale comes after the Temasek-backed company ran into financial difficulties and ceased operations in 2023. The deal is subject to regulatory approval.
Two companies have conditionally agreed to purchase Apollo Aquaculture Group’s (AAG) multi-storey fish farm in Lim Chu Kang for a fraction of its initial value.
The sale, which was reported by the Straits Times, came after the company, backed by Temasek Life Sciences, struggled financially and was placed under judicial management in May 2022.
The fish farm, owned by AAG’s subsidiary Apollo Aquarium, was built at a cost of S$65 million but has now been sold to local construction firm HPC Builders and Aquachamp, an investment holding company with ties to the fish farming industry. HPC Builders will acquire 70% of the equity, while Aquachamp will purchase the remaining 30%.
The acquisition price for HPC Builders is capped at S$3.5 million, significantly lower than the facility’s book value of S$44 million as of 31 March 2024.
This transaction remains subject to approval from the Singapore Food Agency (SFA). The SFA declined to comment on the matter when approached.
Apollo’s eight-storey fish farming facility, which began operations in 2021, was initially seen as a breakthrough in addressing Singapore’s land constraints for agriculture.
The farm had ambitious plans to produce up to 2,700 tonnes of fish annually, including hybrid grouper and coral trout. However, delays in the completion of the farm led to escalating costs and financial troubles, causing the facility to cease operations in early 2023, well short of its production targets.
The company’s financial difficulties resulted in AAG being placed under judicial management, a form of debt restructuring aimed at helping financially distressed but potentially viable companies avoid liquidation. The appointment of an independent judicial manager allowed AAG to attempt to reorganise its operations, but the sale of Apollo Aquarium’s fish farm became a necessary part of the restructuring process.
According to Tan Wei Cheong, Deloitte Singapore’s strategy, risks, and transactions partner, the delays in completing the fish farm severely impacted AAG’s revenue streams and led to its financial collapse. Tan declined to comment further on the sale process, as the agreement is still being finalised.
AAG has five subsidiary companies, but only Apollo Aquarium remains active. The other four subsidiaries, which include Cube 2 (a water technology firm), Aquaworld Tropical Fish (focused on ornamental fish), Smart Hatchery, and Apollo Marine Seafood, have all entered liquidation.
The sale of Apollo Aquarium is seen as a low-cost entry for HPC Holdings, HPC Builders’ parent company, into Singapore’s aquaculture sector. Aquachamp, described as an experienced fish farm operator, will take charge of the facility’s management and operations. HPC Holdings expressed optimism about the long-term profitability of the venture, highlighting the potential for full production capacity to generate steady income and broaden its revenue base.
Aquachamp’s registered address shares a location with Max Koi Farm, a nearby ornamental fish farm in Lim Chu Kang. The two entities are linked through Ng Chuen Guan, who serves as a director of both Aquachamp and AAG. Ng also owns nearly 2.9 million shares in AAG.
Temasek Life Sciences, a subsidiary of Singapore’s investment company Temasek, indirectly holds a significant stake in AAG through TLS Beta, which owns 33.1% of the company. The largest shareholder, Ng Yong Hock Capital, owns 55.1% of AAG’s shares. Despite Temasek’s involvement, the company declined to comment on the sale when approached by The Straits Times (ST).
AAG’s debts, as of March 2024, stand at around S$35.4 million, according to a filing by HPC Holdings. Cargill TSF Asia, the financial services arm of agricultural giant Cargill, is listed among the company’s creditors.
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