November 11, 2015

Sino Agro Food, Inc. (SIAF), a leading producer, processor, and marketer of protein foods in the People’s Republic of China, has announced plans for three to four divestitures, the first of which would form a new aquaculture company from the company’s existing aquaculture operations. In Q2 2015 SIAF’s holdings to be transferred, including Jiang Men City A Power Fisher Development Co., Ltd., Enping City Bi Tao A Power Prawn Culture Development Co., Ltd., Zhongshan A Power Prawn Culture Farms Development Co., Ltd. , and Zhongshan New Prawn Project (development underway), produced 5,331 metric tons of annual production, with a TTM Revenue of $96 million and gross profit of $27.9 million.

"The Company has received feedback from its current institutional investors and major retail shareholders, as well as advisors, that restructuring our businesses as stand alone organizations will create better understood and appreciated businesses bringing more value to our shareholders,” said SIAF CEO Solomon Lee in a company release.

The divestiture is intended to facilitate the funding to further develop existing aquaculture facilities, including the Zhongshan New Prawn Project, which when finished is expected to be the world’s largest shrimp farm.  Over the course of multiple phases, the Zhongshan New Prawn Project has the long-term potential to reach an annual production capacity of 200,000 metric tons. With Phase 1’s scheduled completion by year-end 2016, annual production capacity of the new companies is expected to reach 15,000 metric tons.

The new company would be listed on the Oslo Stock Exchange (OSE), one of the world’s most important financial marketplaces for the seafood sector, with more than 15 companies currently listed in the seafood sector with a combined market capitalization of over NOK150 billion (approximately 18 billion USD).  While planning for the divestiture is underway, this listing will not occur during 2015.

Ultimately, the plan will create more value for its shareholders, to whom SIAF intends to distribute the majority of its holdings in the new company.