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NT black tiger prawns to hit market by 2021
An investment into Seafarms Group Limited by a Japanese marine products company will see black tiger prawns farmed in the NT distributed to local and overseas markets within three years.
Melissa Coade
Firms: Clayton Utz (Nippon Suisan Kaisha Ltd); Corrs Chambers Westgarth (Seafarms Group Limited)
Value: A$25 million
Area: M&A; finance
Key players: The Clayton Utz team advising Nissui was led by Brisbane partner and Japanese bengoshi Hiroyuki Kano (pictured).
The team provided legal advice for all aspects of the transaction, including due diligence, the negotiation of transaction documents in relation to the share subscription, and offtake arrangements.
Deal significance:
Under the deal’s terms of the agreement, Nissui will acquire an approximately 14.99 per cent shareholding in Seafarms, valued at around A$25 million.
A 100 per cent subsidiary of Seafarms named Project Sea Dragon Pty Ltd (PSD) has plans to begin construction of a black tiger prawn farming site in the Northern Territory in 2018. The product is expected to reach the market in 2021.
A statement from Clayton Utz said that Nissui will market the black tiger prawn products from PSD exclusively in Japan, Australia and New Zealand, as well as potential global distribution through Nissui's global network.
“Nissui Group will also distribute in Japan and the Oceania region approximately 2,000 tons per annum of black tiger and other prawns sourced from Seafarms’ existing Queensland prawn farming operations,” the statement said.
Commenting on the transaction, Mr Kano described the deal as an exciting development for Nissui and Seafarms.
“It is a symbolic deal to illustrate the beginning of the new long-term business collaboration between Japan and Australia in the agribusiness sector,” Mr Kano said.
“We expect to see more Japanese companies investing in the Australian agribusiness sector in the coming months and years.”
