Good morning, ladies and gentlemen. We are very pleased to invite you for this investor call on a pretty short notice. The agenda for this morning is that I will do the presentation and then together with Roni Meincon, the CFO, We will together do the Q and A following this presentation. During the presentation, you are invited to post any questions. This morning you have seen several announcements and news from aqua.
I will try to summarize Setera in the highlights. First of all, we are talking about the private placement corresponding to 10% of the outstanding shares in Aqua at a subscription price of NOK €96.50 per share. The background on the basis here is that we have been running a very solid process together with Israel Corp, the new strategic investor in the last few months also our together with our credit thorough due diligence and that altogether led to this share emission and a complete transactional partnership at the share issue of 96.50. Secondly, we are talking about a share sale from existing shareholders at a purchase price of the same NOK 96.50 per share. So Israel Corp will purchase approx 6% our existing agpa shares and then in combination the private placement plus the purchase of the shares will lead to Israel Corp.
Taking a 15% ownership in Aqua, at least 15% ownership. The 3rd element is about establishment of an investment platform for investments in land based projects worldwide. And here the context is that ACWA and Israel Corp together expect to contribute with the USD10 1,000,000 each with the goal and the aim to reach up to $100,000,000 for this investment platform together with co investors. And the 4th element is the announcement of a signed RAS contract with AquaCon, which is still subject to fully financing. So the value for this contract for Aqua is about $150,000,000 and then consequently we are also calling for an extraordinary general meeting on October 20, 2021.
So those are the highlights. That's the summary. The basis for this transaction I will take you through a few slides that's about the market outlook and the strategic agenda for aqua group. First, the global high level picture, the underlying demand with growth, which implies 1,000,000 to 2,000,000 tons of volume increase by the year 2030. So, if you look bottom left here, that's the back mirror.
That's what happened with regards to volume growth, the global salmon supply in the last 10 years. So that came up with 1,100,000 tonnes which is representing a CAGR of 6% year on year. Then looking forward, there is a kind of consensus in the industry that the industry has the capacity based on Cairn technology platform, which is basically cage based Norway and Chile and the other regions. The traditional farming, which will probably allow the industry to have a supply growth of 3% year on year. However, if you take the global demand into equation, it's likely that that can grow on a higher pace, faster pace than the supply side.
And the other estimation is that a price neutral growth could be as high as 5% annually. And the gray area is then representing the supply gap. I call it the wind of opportunity and that's going to be 800,000, 900,000 tonnes of salmon over those years on our into 2020, I should say, which needs to come from new production platforms, which could be offshore, a but probably the majority needs to come from land based closer to the consumer. So this demand we expect to happen on the global megatrends which has to do with salmon as a favorite species. Salmon carrying positive environment and health attributes, The EPA, DHA or Omega 3 is well known within salmon and also distribution and access to new markets, new product development, the sushi sashimi trend at SITRA.
Our so all this is leading to the expected growth. So if you summarize what I just spend on the previous page. You have the demand side here on upper left also in 2 regions with the 5% year on year CAGR. I also explained about the conventional production with a 3% CAGR. A that is the capacity likely on the global growth on the traditional production platform.
Once again that's cage based farming as we know it today. And then thirdly, the window of opportunity to supply gap the potential of ballpark 800,000 tonnes, which we believe a big part of the solution and answer to that needs to come from land based and there are some more details on the slide but I like to stay a bit high level. If you look upper right, we believe that the implications for Aqua Group is that this is calling for still very strong cage farming segment a with quite some growth and we expect to see exponential growth in the land based revenue for RAS like technology. So once again, Lanta is farming to be part of the solutions into 2,030 to fill the consumer gap. However, what we have been seeing recently, there is a massive headwind in land based full grow out segment.
Here we just illustrate that by putting the share price development for the 7 listed land based companies and as you can see year to date 6 of the 7 have seen a massive decline in valuation year to date. So once again, we believe the land based farming has a great potential. This is our pipeline. To the very right, we could have illustrated not the €500,000,000 contract with this project in China. That is going well.
That is being executed in accordance to plan. Then we have aquacom which is now announced this morning to be a final contract and ecofisk and Svenskelags where we are in process of finalizing RAS contracts. So if I should then summarize the challenge for this segment, the full growth segment, the land based segment. We see it this way that the main challenge is access to equity financing. And the land based business has been too dependent on Norwegian capital.
There are just a lot of projects. And many of those key projects will be overseas projects closer to the consumer in North America and Asia and we believe it's crucial and key to have access to international equity financing to realize those projects and this is also the background and the basis why we have entered into the strategic partnership with israelco. So one element in the announcement is the establishment of the investment platform which is between ACWA and Israel Corp. We have agreed to establish one investment platform. The legal structure.
It's not decided yet. And the investment in the land based projects worldwide is based on using aqua technology and solutions but also bearing in mind ESG considerations. So both parties will contribute with the $10,000,000 each and this can be in a pre established project as well and the goal is to raise further commitments from co investors and partners up to $100,000,000 and this investment platform will target projects which are what we call closer to the consumer, for instance, in North America, Middle East and Asia. Now. And a few key words about the announcement this morning with regards to Akvakon a Andeavoras contract there.
The location is in Maryland in the U. S. The parent entity is Akvakon AS in Norway and the first phase capacity is planned to be 16,000 tonnes. The total master plan for this project is approximately 50,000 tonnes and I have secured the land for 3 sites, 3 equal sites, 3 times 16,000 tons approx. The status for us is that basic engineering and design work is very much completed and the delivery contract is now signed but still subject to final financing.
There the context is that Israel Corp together with ACVA will participate in the financing with a US5 million convertible loan and the option to invest additional US15 million dollars both under certain conditions. Our also there we can give the context that Israel Corp will actively back aquacom in the fundraising using their own our investor network. So to summarize what this could mean for ACWA going forward, There are basically three elements here with regards to land based activity and the turnover ramping up from where we are today at approx €500,000,000 and the first milestone to double to €1,000,000,000 annual turnaround. So 3 building blocks. One is about tapping into the past growing post smalt segment in Norway, which is working very well fast growing.
So there all projects customers very well financed as well. Second is about the Nordic Aqua Partners. So, as you see the evolution and the administration for the turnaround the 1st couple of years and then we also banked on our Phase 2 which we expect to kick in a couple of years. And then the 3rd element on top is turnover from a new ongoing contract now illustrated this morning with Akwa Khan. So What I'd like to say about this with the new investment platform I explained on the previous page, of course, deal under construction as a disclaimer.
But with this in our toolbox, we are confident that we will make the step up up as illustrated here. And that leads me very much to the guidance. We posted this in November last year during our Capital Market Day. Basically, we are talking about organic top line growth, operational excellence programs in place. We are talking about stepping up our spending and increase in innovation both with regards to product development and organic growth and also focusing on the 3 digital platforms aqua connect aqua observe and fish talk our and the guidance is that the combination of those levers will give and deliver a minimum 25% EBIT increase year on year and gradually a step up to improve our OS to a minimum of 15% by 20 Q3.
Yes, as you have if you have been following Akerberg, you can see that we have been facing some type of headwinds in particular in the first half of this year due to cyber attack and also COVID situation. So I would say that 2020 is expected to be a year in between. However, we expect the step up as illustrated here to really take part and accelerate as of 2022. Then a we talk about the share issue. We consider this an attractive share issue to accelerate our strategic agenda and basically what it means for Aqa is that we will get access to NOK300 million, about NOK300 million as part of this share issue and that's to the benefit of our strategic agenda.
And just to rehearse very quickly what we mean with our strategic agenda. We have the strategy, the 4 pillars in our land based strategy which is building on our zero water concept RAS technology we are leading there when it comes to water scarce technology which is important in overseas market secondly it's box 2 is about completing the complete value proposition and offering it takes to run a successful land based activity and that's about feeding fish tanks, fish handling, camera lights, sensors and control systems. So we have an R and D agenda to support that development. And thirdly, it's about more the digital agenda to support what we call precision farming. Our and finally, we also need to care about what is going to happen within production, the biological production Acht and fish health is key there.
So we have already established a very strong team a with strong novel 3 Ph. D. To support our customers in succeeding. Our. This is the land based part.
With regards to digital, we believe that the digitalization in aquaculture is basically about 3 generic trends. It's about remote operations. In the future, you will do feeding. You will have automated feeding and operation from maybe a big center per region or even on a country level. So less people will be on the site.
Precision fish farming is about having as precise feeding as possible to avoid waste of feed and have as good feed conversion rate and growth factor as possible. And thirdly it's about bringing different systems together in a global ecosystem in order to have more power from big data. So with regards to those 3 generic trends, we believe that aqua is well equipped to be a leading player here. We have currently observed technology that's our automated feeding solution. We have fish stock.
60% of the global salmon will be on our production system, Fishtalk and we have also aqua connect bringing hardware and software together. And then on the sea based side, the so called cage farming, we have 4 building blocks there as well which is about marine infrastructure, precision feeding, digital and fish health and lice solutions. And underneath here in the blue color, the blue front, you can see different concrete products which we already have today in the marketplace. We believe those are the 4 fundamental dimensions you need to cover in order to be successful with your sea based operation. So we are fairly advanced today, but we also realize that in order to be successful, we really, really need to speed up and accelerate innovation even more so those three elements land based, sea based and digital together with the internal focus we call it our operational excellence program which is about the Agba way getting it right first time.
It's about building a strong global ERP platform and also strengthening capabilities within project and business controlling. All those together and we believe we can stimulate even more and accelerate and that's about the base. That's why we are doing this share issue. And Israel Corp will be and become an important strategic partner for Aqua and the investment platform will be the driving force for realizing of new land based projects as well. Our and we consider the whole transaction to be at a pretty attractive subscription price of 90 €6.50 per share, which is at a premium from trading the last weeks.
And with regards to Israel Court, that's a reputable public investment a company that owns and invests in high quality companies with established management and go to markets. Israelcorp new investments focuses mainly on food, food tech, agri and agri tech, healthcare and industry for 0. Our and Israel Corps tries to generate return on its investment through active board participation and its operational our comment that in a minute, but I have to say that we have been working pretty intensively in the last few months with the management of Sverdrup and I have to say that has been truly Inspirational. And then final slide just to conclude on the partnership with Israel Corp. Israel Corp.
And Aqua will form a strategic partnership with the purpose to share and utilize experience related technology, digital and food industry. And also as part of the arrangement and the partnership Israel Corp will be entitled to our Point 1 board member in Aqua while it hosts strategic ownership position of minimum 12%. Also, we are going to work together our and the chosen model is that ISVEL Corp will be part of an advisory committee to provide advice to CEO and the management of AKFA in matters of strategy technology and innovation where they are carrying a lot of capabilities. AKFAAN is well corp to be general partner for the investment platform which is still under construction and the goal is to invest in land based projects either by direct investment or through the investment platform. Acht.
And last and not least, Egasun Group will still hold the majority ownership in Achtam. So as a closing remark before we go to the Q and A, I consider this transaction with the partnership with Israel Corp together with the new agreement with Aquacom to be a truly, truly a great news for aqua this morning. So very, very happy to share that with you and thanks for listening in and then we like to move to the Q and A session. So I will ask Ronny to join me our moderator to read any questions. Our.
We don't have any questions yet, but still time to post questions. If you like to post any questions, our we kindly urge you to do it shortly. Okay. If it was crystal clear, that's absolutely appreciated by us. Perhaps you can give it 15 seconds more, but Yeah.
All right. Thanks for joining on a pretty short notice and appreciate that you listen in. So thank you very much. Have a nice day. Thank you.