South African frozen seafood business Sea Harvest is seeking to take full control of its Australia-listed subsidiary Mareterram.
Cape Town-based Sea Harvest said it has entered into a binding “bid implementation agreement” with seafood processor Mareterram, in which it currently holds a 56.3% stake, to acquire the remaining portion through its wholly-owned subsidiary Sea Harvest International Proprietary Ltd.
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Mareterram is listed on the Australia Securities Exchange, while Sea Harvest is listed on the Johannesburg Stock Exchange (JSE). The South African firm raised its stake in its Australian peer back in 2016 from 19.9%.
Sea Harvest is offering AUD0.25 (US$0.18) a share, valuing Mareterram’s total issued capital at AUD38.6m, which sets the acquisition price at AUD16.9m.
“In line with Sea Harvest’s strategy of investing in well-managed, sustainable, vertically-integrated fishing and agri-businesses around the world, the proposed offer, if successful, would allow Sea Harvest to fully integrate Mareterram, extract operational synergies and align Mareterram’s operating structure, growth strategy and funding requirements with that of Sea Harvest,” according to a statement.
“The proposed offer allows Sea Harvest to continue diversifying its earnings and increasing its market share and presence in Australia.”
Sea Harvest, which is 54% owned by Brimstone Investments, added that the proposed deal is not subject to shareholder approval. In terms of the listings requirements of the JSE, the “proposed offer falls below the required thresholds in order for it to be deemed a categorised transaction and accordingly, is not subject to Sea Harvest shareholder approval”.
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