Singapore-based Barramundi Group has said it is considering selling its loss-making Australian business, because it requires more investment than the company can commit to.
Barramundi operates fish farms in Singapore, Brunei and Australia. It has applied for 13 licences in Western Australia in an ambitious move to ramp up its production in that country from around 1,600 tonnes annually to 30,000 tonnes.
The required investment was estimated earlier this year as approximately AU$350m (around £200m).
The group has previously announced its intention to find a “strategic partner” in Australia, but, in an announcement today, it said: “Following discussions with various potential investors, Barramundi Group has now decided to also consider a complete divestment of the business.”
The Australian business is currently not profitable, but Barramundi said its management “…is actively working on pricing adjustments and cost saving measures which are expected to result in improved margins that will bring the business closer to profitability.”
The company plans to report further when its Q3 business update is published , on 29 November.
Barramundi Group is the first Australasian aquaculture group to be listed on the Oslo Stock Exchange.