Advertise with fastmoving.co.za
 
 

Sea Harvest has cast its net wider in Australia.
Sea Harvest has cast its net wider in Australia.

Sea Harvest subsidiary lands mackerel permits

FMCG SUPPLIER NEWS

By Marc Hasenfuss - Nov 6th 2017, 15:45

Recently listed fishing group Sea Harvest — which is controlled by empowerment group Brimstone — has cast its net wider in Australia. 

On Friday, Sea Harvest announced that its 56%-owned Australian subsidiary Mareterram had secured two mackerel-license packages. Mareterram, which is listed on the Australian Stock Exchange, has also acquired an established fishing fleet and support vessels.

Diversification into mackerel fishing provided scale and a complementary revenue stream to the Mareterram’s existing niches in prawn, scallop and crab fishing, said a spokesman for Sea Harvest, which is primarily a hake-fishing company with a frozen package brand that is a household name in SA.

Sea Harvest, which listed shortly after smaller rival Premier Fishing (PremFish) made its debut in March, has not yet made any local acquisitions. PremFish recently acquired a sizeable Port Elizabeth-based squid fishing business.

PremFish and Sea Harvest have been tipped as contenders to acquire fishing operations – including hake, abalone, and an Australian seafood business — that consumer brands conglomerate AVI has under review.

Mareterram’s mackerel deal is valued at A$4.95m (R53m) and will be funded through a combination of debt funding, as well as a placement of new Mareterram shares. Sea Harvest has committed to maintaining its 56% stake in Mareterram through a pro rata participation in the share placement.

In an investment presentation that accompanied the acquisition, Mareterram noted that Spanish mackerel was a premium white fish that was product filleted and snap frozen on board the fishing vessels.

Mackerel fishing licenses in Australia are held in perpetuity, unlike SA where catch categories are subject to new allocations at various intervals.

Mareterram said the mackerel operations would be consolidated into a single vessel and the surplus vessels would be sold.

It disclosed that the deal brought on board 30% of Western Australia’s mackerel fishery. The presentation also provided an operational update that noted the 2017 fishing season had seen the prawn catch volume increasing to 830 tonnes.
© BusinessLIVE MMXVII 

Read more about: sea harvest | brimstone

Related News

Listing helps boost Sea Harvest profit
07/03/2018 - 16:03
Sea Harvest, the recently listed fishing enterprise controlled by Brimstone Investment Corporation, netted a sizeable profit haul in the year to end-December.

Strong global demand for Cape hake helps Sea Harvest shares
05/02/2018 - 14:44
Sea Harvest’s share price rose 4% on Monday, on the expectation of improved performance in SA, driven by strong market demand for Cape hake globally and the performance of investments the group has made in Saldanha Bay processing plants.

Sea Harvest in talks to acquire Viking Fishing
11/12/2017 - 10:36
Sea Harvest and its parent Brimstone Investments say negotiations are underway to acquire Viking Fishing for an undisclosed amount.

Sea Harvest triples first-half headline earnings
23/08/2017 - 14:00
Sea Harvest has tripled its first-half headline earnings as a result of the improved performance in its South African operations.

Sea Harvest debuts on JSE Main Board under Share Code: SHG
23/03/2017 - 11:18
The Sea Harvest Group (SHG) listed on the Johannesburg Stock Exchange (JSE) today, 23 March 2017, with 42% of the company floated at a trading price of R12,50 per share raising R1.33 billion, resulting in a group market capitalisation of c.R3.14 billion. The money raised will be used to pay down debt and fund growth both locally and internationally allowing it to fulfil its vision of becoming a diversified global seafood company.