The Nelson-based company, King Salmon is the biggest salmon farming, processing and marketing firm which is now looking for potential buyer to raise money to help fund expansion. The company operates sea cage sites in the Marlborough Sounds and is owned by Malaysia’s Tiong Group, which also owns New Zealand forestry business Ernslaw One. Paul Steere, CEO of NZ King Salmon, admit that the sales process was well advanced, with interested parties expected to move on to due diligence.
According to him the deal could be concluded within a month. The company was formed in 1996 through the privatisation and merger of Southern Ocean Seafood and Regal Salmon, NZ King Salmon has three main retail brands – Regal Marlborough Salmon, Seasmoke and Southern Ocean. The company has domestic market that takes about half its production, with Japan and Australia its leading export markets. Its products include fresh, frozen, smoked, marinated and sashimi salmon.
Local media reported that the interested parties were due to lodge indicative bids with Tiong Group’s adviser, investment bank Macquarie, this week. Steere also informed that he expected interest from private equity firms. He said NZ King Salmon was looking to expand its processing facilities, develop more farms and increase volume. He opined that the Tiong Group planned to retain a majority stake in the firm, and a new minority shareholder would not change the way NZ King Salmon operated.
