Brisbane, 5 June 2018: Clayton Utz has advised Japanese marine products company Nippon Suisan Kaisha Ltd ("Nissui") on its acquisition of a stake in ASX listed prawn farming operation Seafarms Group Limited ("Seafarms"). Nissui announced the transaction on 22 May 2018.
A Clayton Utz team led by Brisbane partner and Japanese bengoshi Hiroyuki Kano advised Nissui on all aspects of the transaction, including due diligence, the negotiation of transaction documents in relation to the share subscription, and offtake arrangements.
Under the terms of the agreement, Nissui will acquire an approximately 14.99 per cent shareholding in Seafarms, valued at around A$25 million. Project Sea Dragon Pty Ltd, a 100% subsidiary of Seafarms ("PSD"), plans to begin construction of a black tiger prawn farming site in the Northern Territory in 2018 and bring the product to the market in 2021. 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 tonnes per annum of black tiger and other prawns sourced from Seafarms' existing Queensland prawn farming operations.
Commenting on the transaction, Hiroyuki said: "This is a very exciting development not only 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. We expect to see more Japanese companies investing in the Australian agribusiness sector in the coming months and years."