China Fish / Pac Andes

China Fish / Pac Andes: Following certain media report that Pac Andes and subsidiaries have gained Russian fishing assets without the relevant approval, the group has issued a joint announcement. It states that “it does not own any fishing quotas in Russian waters” and “believes that the group’s supply of fish is in compliance with existing Russian law”. OCBC spoke to mgt to get further clarity. The group has not received any official notification from the authority, but is planning to set up a meeting to get further clarification. It also reiterated that there is no change to its current operations. However, in the worst case scenario, and if they are not permitted to get fish from there, this could result in a premature termination of its prepayment contracts, and the counterparties will have to refund the investments back to the group. Pending official clarity on this issue, the house expects Pac Andes’ shares to remain under pressure as fishing forms a critical part of its operations. Says while it has a medium-t