Seafood giant Sea Harvest yesterday announced that it plans to list on the JSE in March, in a move that is set to position it as a global seafood producer.
The company said it would raise up to R1.5billion in capital through private placement with the proposed listing.
It said the proceeds from the listing would be used to repay all debt and support the company’s organic growth and any future acquisitions.
Sea Harvest is 85percent owned by Brimstone Investment , a black-controlled and managed investment company.
The remaining 15percent are held by staff and management.
Brimstone chief executive Mustaq Brey said Sea Harvest had been a strong performer in the group, and the company was expected to grow even further.
“The company is energised and poised for growth.
“Brimstone has established a track record of creating value in various ways for its shareholders over the years. Our role in the listing of Life Healthcare on the JSE, and the significant value it created to all stakeholders, is a fine example,” Brey said.
Brimstone said its holding would be reduced to 52percent after the listing, which would still allow it to hold a majority shareholding in Sea Harvest.
The two companies’ history dates back to 1998, when Brimstone first invested in 53-year-old Sea Harvest, with an initial 10.76percent interest.
Since then, Brimstone has invested R776million through additional capital and reinvested profits, allowing Sea Harvest to invest considerably in new vessels and plant efficiencies.
Last year, Sea Harvest used some of the capital to acquire 56percent of Australian-listed Mareterram for nearly R250m.
Mareterram specialises in catching, processing and marketing king and tiger prawns.
Sea Harvest has demonstrated strong growth over the past five years, with 59percent of its revenues generated in hard currencies.
Europe and Australia are its largest international markets.
Revenue has been growing at a compound annual growth rate (CAGR) of 15percent, and earnings before interest, taxes, depreciation and amortisation have grown at a CAGR of 22percent.
Brey said the listing was subject to approval by the majority of Brimstone shareholders, regulatory approval by the JSE and any other regulatory consent that may be required.
He said Brimstone’s shareholders would meet on March 9 to decide whether to approve the listing.
If the listing went ahead, it would add further impetus to transformation in South Africa and the government’s strategy to increase the number of black industrialists.
“Over the past two years alone, investments of some R300m have been made in vessels and infrastructure, with a corresponding increase in margins. This has also contributed directly to the creation of new jobs,” Brey said.