Singapore’s US$50M high-tech fish farm to be sold at a steep discount

SINGAPORE – Apollo Aquaculture Group’s (AAG) eight-storey fish farm in Lim Chu Kang, once a promising symbol of high-tech fish farming, is now set to be sold at a fraction of its US$50 million cost. 

The sale comes after AAG, which ran into financial difficulties in 2022, ceased operations at its multi-storey facility early this year. 

The fish farm, owned by AAG’s subsidiary Apollo Aquarium, has been conditionally sold to local construction and engineering firm HPC Builders and Aquachamp, an investment holding company with ties to the fish farming industry. 

The sale is subject to approval by the Singapore Food Agency (SFA), which has declined to comment on the transaction.

The farm began operations in 2021 and was originally celebrated as a cutting-edge solution to Singapore’s land constraints, with plans to farm hybrid grouper and coral trout. 

It was projected to produce up to 1,000 tonnes of fish annually by 2021, with the potential to scale up to 2,700 tonnes by 2023. 

However, delays in completing the facility contributed to significant cost overruns, forcing AAG into judicial management in May 2022. By early 2023, Apollo Aquarium had ceased operations entirely.

The company’s financial difficulties have led to the liquidation of four of its five subsidiaries, with only Apollo Aquarium remaining active. These challenges were compounded by mounting debt, with AAG’s unaudited debt at US$27 million as of March 31, 2024.

HPC Builders, whose parent company is listed in Hong Kong, will acquire 70% of Apollo Aquarium’s equity for no more than US$2.7 million, while Aquachamp will take the remaining 30%. 

The deal allows HPC to enter Singapore’s aquaculture sector at a “bargain price,” with plans to bring the fish farm to full production capacity. Aquachamp, an “experienced fish farm operator,” will manage the facility’s operations.

The sale is part of AAG’s broader restructuring efforts. Tan Wei Cheong, AAG’s judicial manager from Deloitte Singapore, stated that the company’s financial woes were primarily due to delays in completing the farm, significantly affecting revenue and operations. 

Aquachamp’s involvement has drawn attention due to its connections with Max Koi Farm, a prominent ornamental fish farm near the Apollo facility. Aquachamp’s director, Mr. Ng Chuen Guan, is also a director of AAG and owns nearly 2.9 million shares in the company.

AAG’s largest shareholders include Ng Yong Hock Capital, which holds a 55.1% stake, and TLS Beta, a subsidiary of Temasek Life Sciences, which owns 33.1%. Despite its involvement, Temasek declined to comment on the situation.

As the sale moves forward, there is cautious optimism that the fish farm will return to full operation and deliver long-term returns. 

HPC Holdings has expressed confidence that the facility, once fully operational, will generate stable sales and contribute to a broader revenue base.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.