South Africa's Sea Harvest makes offer to buy all of Australia's Mareterram

The deal would bolster Sea Harvest's exposure in Australia.

South Africa's Sea Harvest Group has made an all cash offer to buy the 43 percent remaining stake in Mareterram that it doesn't already own, the company announced on Tuesday.

Sea Harvest, the JSE-listed listed fishing enterprise controlled by investment firm Brimstone Investment Corporation, already owns a 56.3 percent stake in Mareterram, which is listed on the Australian Securities Exchange.

Sea Harvest said the deal is inline with its strategy of investing in well managed, sustainable, vertically integrated fishing and agri-business around the world.

“If successful, [the deal] 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,” the company said in a statement.

It also said the deal allows Sea Harvest to “continue diversifying its earnings and increasing its market share and presence in Australia.”

Mareterram operates 11 vessels catching "king prawns" and "tiger prawns" both for domestic and export markets. It also lands scallops, blue swimmer crabs, squid, cuttlefish, and Spanish mackerel.

Sea Harvest is offering A$0.25 per Mareterram share thereby valuing the entire issued capital of Mareterram at approximately A$38.6 million and the acquisition price for the remaining shares is A$16.9 million (R163 million).

Sea Harvest said the acquisition price will be funded from its existing cash resources.