Tri-way Industries, Ltd. (“TW”) is an independent Hong Kong based corporation in which Sino Agro Food, Inc. holds a 36.6% ownership interest. SIAF carved-out its aquaculture businesses to reform Tri-way, which had previously been a wholly owned entity of Sino Agro Food and which owned a limited set of assets.
In addition to assets already held in Aquafarm 1 (“AF1”), TW acquired the assets of Aquafarms 2, 3, 4 and 5 from their respective owners / investors, including SIAF, as well as rights to technology licensed from Capital Award, a wholly owned subsidiary of SIAF.The carve-out was completed and announced in a press release on March 1, 2017.
Tri-way’s enterprise value was assessed at US$340.6M, with Sino Agro Food, Inc. retaining and/or acquiring holdings of US$124.7M (of US$340.6M), which includes a provision for repayment of debt owed to SIAF. In its recent credit rating, Dun and Bradstreet assessed Tri-way's enterprise value even higher.
The aquaculture operations each have the ability to grow a variety of seafood species, including prawns. This was one reason to change their designation to“aquafarms.” The proportion of production will vary from quarter to quarter. Aquafarm 4 began production in the fourth quarter of 2016. Through the first nine months of 2016 AF1-3 produced 8,999 metric tons: sleepy cod (321), Giant Mottled Eel (265), Prawns (1,844), and Finfish (6,569), generating revenue from the sale of goods of $57.5M and gross profits of $13.1M.