Viking deal curtails Sea Harvest’s catch


Viking deal curtails Sea Harvest’s catch


Published Date: 2018-08-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Viking deal curtails Sea Harvest’s catch

The fisheries group will report lower first-half HEPS due to acquisitions costs and the dilution of its shares

Sea Harvest says this year's acquisition of Viking will constrain earnings, while dilution from last year's listing on the JSE will result in lower earnings per share.

In a trading statement, the fisheries group said headline earnings for the six months to end-June were expected to rise by up to 3%, to between R110.7 million and R114 million. That's after absorbing transactions costs for the Viking deal. It said basic earnings per share for the period would be down by between 25% and 31% and headline earnings per share would fall by 13% to 20%.

The group issued more shares when it listed on the JSE last March. The R885 million Viking acquisition was also paid partly with Sea Harvest scrip. On average, there were 23% more shares in issue than in the corresponding period last year.

Sea Harvest led the consortium that bought Viking as part of its strategy to become one of the largest black-owned diversified global seafood and food companies. It said the acquisition of Viking fitted its investment criteria and complemented its own fishing businesses. The company reported net profit of R192 million last year.

Its shares rose 1% to R15 on Friday.


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