Asmak aquaculture firm receives US$114 mlllion for recovery

The International Fish Farming Holding Company  (Asmak) has signed an agreement with holding company Royal Group to provide Asmak with US$114.34 million for growth purposes and to allow it to return to profit. Abu Dhabi-based Royal will buy two-year convertible bonds from Asmak, said a 29 December filing to the Abu Dhabi Securities Exchange.

"Our strategy is to expand what we are already doing aquaculture and fisheries but also to expand into new areas so we can obtain sustainable profit for our shareholders," said Asmak Vice Chairman Mohammed Helal al Muhairi. He said Asmak would also use the capital to acquire firms to boost its profit and let it award dividends. Its largest single shareholder is development company Hydra Properties, fully owned by Royal, which has a 47 percent stake, reports The National.

When the convertible bond matures in two years, Royal Group could become a major shareholder. At first, Asmak focused on constructing farms in the United Arab Emirates (UAE), but in 2009 it discontinued operations there and in Oman due to red tides. Currently, the company focuses on the less lucrative business of sourcing fish worldwide for local supermarkets and catering firms. Originally, the company was launched by the UAE Offsets Group with capital given by Dassault Aviation after UAE acquired Dassault's Mirage fighters. Read more...

This blog is written by Martin Little The Aquaculturists, published and supported by the International Aquafeed Magazine from Perendale Publishers.