Sea Harvest casts its net wider in Australia


Sea Harvest casts its net wider in Australia

Published Date: 2019-02-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sea Harvest casts its net wider in Australia

The group says the offer for Mareterram would further diversify its earnings and increase its market share in Australia.

Sea Harvest plans to buy out the shares it doesn't already own in listed Australian subsidiary Mareterram for R163 million. The fisheries group is offering Mareterram's minority shareholders 25 Australian cents per share for their holdings, valuing the group at A$38.6 million. That's a 22% premium to where the shares were trading on 1 February and a 31% premium to the 30-day volume weighted average price of the stock.

Sea Harvest is already Mareterram's biggest shareholder with a 56% stake in the fishing and seafood distribution company. It said the deal was in line with its strategy of investing in well managed, sustainable, vertically integrated fishing and agri-businesses around the world. Taking full control would allow it to fully-integrate the Australian business and align its operating structure, growth strategy and funding requirements with its own.

The deal hinges on a number of requirements being met, including Sea Harvest obtaining at least 90% of Mareterram by the end of the offer period and the approval of the Australian authorities under the Foreign Acquisitions and Takeovers Act, amongst others.

An independent board committee appointed by Mareterram has already advised shareholders to accept the offer in the absence of a better proposal.

Sea Harvest's shares closed unchanged at R13.

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