Nordic Aqua owners approve issue of new shares
Chinese investors will take 20% stake in Ningbo salmon RAS
Shareholders of China land-based salmon farmer Nordic Aqua Partners (NOAP) today approved a plan to increase share capital in subsidiary Nordic Aqua (Ningbo) Co, Ltd from €87 milion to €108.75m. The move was approved at an extraordinary general meeting (EGM).
The shares will be subcribed by two Chinese investors who will then hold an aggregate 20% stake in the subsidiary.
The equity sale is part of a larger financing package to support the soon-to-be-completed construction of Stage 2 of Norway-headquartered Nordic Aqua’s recirculating aquaculture system (RAS) facility in Gaotang, Ningbo, and the plan for Stage 3 which will increase total annual capacity from 8,000 tonnes (when Stage 2 is fully operational) to 20,000 tonnes.
As well as the equity sale, Nordic Aqua Ningbo has reached a preliminary agreement on terms and conditions for financing of the existing facility in Gaotang as well as a working capital facility with a syndicate of Chinese banks led by Bank of China, Ningbo branch.
The financing package is subject to final documentation and is expected to be completed in the current quarter.
Respected investors
Speaking when the plan to increase share capital was announced on September 25, NOAP chief executive Ragnar Joensen said the equity sale marked a major strategic milestone for the company.
“Our long-standing collaboration with the Chinese institutions goes back to the very beginning of Nordic Aqua Ningbo. The introduction of two respected entities as strategic minority partners represents a natural evolution of that cooperation. It not only secures equity but also enhances our ability to scale sustainably - strategically, operationally, and commercially - to deliver high-quality Atlantic salmon for the Chinese market.”
NOAP will retain operational and strategic control of the Ningbo platform.
