JSE-listed fishing business Sea Harvest has entered into a binding bid implementation agreement with its 56.3% held Australian subsidiary, Mareterram, to potentially acquire the remaining shares of Mareterram by way of an off-market takeover offer.
Sea Harvest is offering A$0.25 for each Mareterram share, valuing the issued capital of the Australian company at about A$38.6-million.
The acquisition price for the proposed offer is A$16.9-million, which equates to roughly R163-million at the current exchange rate.
The acquisition price will be funded from Sea Harvest’s existing cash resources.
The 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, the company said in a statement released on Tuesday.
The offer also allows Sea Harvest to continue diversifying its earnings and increasing its market share and presence in Australia.