JOHANNESBURG – South African fishing and food company Sea Harvest said on Tuesday that it had entered into a deal with its 56.3 percent held Australian subsidiary Mareterram to potentially acquire all the ordinary shares it does not own by way of an off-market takeover.
It said the proposed offer would allow it to fully integrate Mareterram and align its operating structure growth strategy and funding requirements with that of Sea Harvest and allow it to continue diversifying its earnings and increasing its market share and presence in Australia.
Sea Harvest is offering A$0.25 per Mareterram share, valuing the entire issued capital of the Australian firm at about A$38.6 million and the acquisition price at A$16.9 million (R163 million).
The South African company said the acquisition price would be funded from its existing cash resources.
The deal is subject to the satisfaction or waiver of various conditions including Sea Harvest having a relevant interest in at least 90 percent of Mareterram shares during or by the end of the proposed offer, as well as approval in terms of the Australian Foreign Acquisitions and Takeovers Act.
In terms of the listings requirements of the Johannesburg Stock Exchange, the proposed offer falls below the required thresholds to be deemed a categorized transaction.
"Accordingly, (it) is not subject to Sea Harvest shareholder approval," Sea Harvest said.
African News Agency (ANA)