By Paul McBeth

Aug. 30 (BusinessDesk) - New Zealand King Salmon Investments' cornerstone shareholder Oregon Group doesn't plan to exit its "trophy investment" now the escrow period is over.

The restriction on Oregon selling its 40.2 percent stake lifted today, being the first day after the salmon farmer reported its 2018 annual result. That stake is worth $155.7 million at the recent trading price of $2.80, more than twice its $62.3 million valuation when King Salmon sold shares at $1.12 in an initial public offering.

Oregon, which manages a New Zealand portfolio of businesses for Malaysia's Tiong family, has been a long-standing backer of King Salmon. It invested in 1996 when the company was formed through the merger of Regal Salmon and Southern Ocean Seafoods and sold just 756,000 shares into the 2016 IPO.

Oregon managing director Thomas Song, who's also a King Salmon director, said the company has "absolutely no plan to sell".

"Still a trophy investment with very happy shareholders behind Oregon," he said in an email.

Escrow periods restricting when a vendor or management can sell their stake in a company are often used to ensure a firm's performance doesn't deteriorate after a sale. When they lift it's typically an opportunity for a cornerstone investor to reduce or exit an investment.

King Salmon yesterday reported a 21 percent gain in operating earnings to $26.2 million, beating its prospectus forecast. The gain was due to strong export growth in North America and Europe and could have been higher had rising water temperatures not increased mortality rates.

(BusinessDesk)

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