According to a filing on the Hong Kong Stock Exchange on May 31, seen by The Straits Times, HPC Builders will purchase 70 per cent of Apollo Aquarium’s equity, for not more than $3.5 million, while the remaining 30 per cent will be sold to Aquachamp. HPC Builders’ parent company, HPC Holdings, is listed on the Hong Kong Stock Exchange.
As at March 31, the book value of the farm – including its equipment and machinery, is worth $44 million.
The multi-storey fish farm is said to be Apollo Aquarium’s “only significant asset”, according to the document.
The three entities had entered into an agreement for HPC and Aquachamp to acquire Apollo Aquarium on May 31.
The sale will essentially allow HPC Holdings to invest in Singapore’s aquaculture industry at a “low cost”, according to the document.
Aquachamp, which is an “experienced fish farm operator”, according to the bourse filing, will be in charge of the management and operations of the fish farm. ST has contacted the company for comment.
HPC Holdings said that the investment was done at a “bargain price”, and the fish farm will be able to “run at full production capacity, yielding favourable returns in the long run, with a stable sales income and a broadened revenue base”.
Checks by ST found that Aquachamp’s registered address is in the same location as an ornamental fish farm known as Max Koi Farm, situated close to the Apollo facility in Lim Chu Kang.
Acra records show that Max Koi Farm is owned by Mr Ng Chuen Guan, who is also a director of Aquachamp, and a director of Apollo Aquaculture Group, which he owns close to 2.9 million shares in.
Apollo Aquaculture Group’s two largest shareholders are Ng Yong Hock Capital, which holds around 55.1 per cent of the company’s shares, and TLS Beta, which holds about 33.1 per cent of the shares, equivalent to $35 million of paid-up capital.
TLS Beta is a wholly-owned subsidiary of Temasek Life Sciences, which is linked to Temasek. Temasek declined to respond to queries from ST.
The remaining equity is owned by three companies and 14 people, with each of their equity stake ranging from approximately 0.1 per cent to 3.6 per cent, according to the document.
The group’s subsidiary, Apollo Aquarium, is primarily involved in fish farming activities and the import and export of freshwater ornamental fishes.
According to the filing by HPC Holdings, as at March 31, Apollo Aquarium’s unaudited debt stood at about $35.4 million.
Cargill TSF Asia, the financial services arm of the agricultural commodity giant, was listed as one of Apollo Aquaculture Group’s creditors, according to Acra. ST has approached Cargill for comment.
ST has reached out to Apollo Aquaculture Group CEO Eric Ng for comment.