Sea Harvest on line for JSE float

Fishing company Sea Harvest is to list on the JSE, owner Brimstone said yesterday.

Fred Robertson, chairman of both firms, said it would be one of the first listings of a black-owned industrial company.

"The listing will add further impetus to transformation in South Africa, and is strongly aligned with the government's strategy to increase the number of black industrialists," said Robertson.

"Sea Harvest will retain its black ownership credentials, with Brimstone continuing to own more than 50% of the company post-listing. Our long-term partnership approach has worked well and this will remain a cornerstone of our investment philosophy."

A capital-raising exercise of R1.5-billion, which will happen simultaneously with the listing, will be used to repay debt and fund acquisitions.

"Organic growth will come from margin enhancements by improving efficiencies and investing further in the business," said Robertson.

"Over the past two years alone investments of about R300-million have been made in vessels and infrastructure with a corresponding increase in margins. This has also contributed directly to the creation of new jobs."

Brimstone first invested in 53-year-old Sea Harvest in 1998 and holds 85% of the company. Management and staff own the remaining 15%.

Since taking control in 2009, Brimstone has invested R776-million in the company.

Last year it acquired a 56% controlling stake in Australian- listed Mareterram, which catches, processes and markets king and tiger prawns and operates a food business.

Sea Harvest's principal South African business is catching, processing and freezing hake for sale domestically and abroad.

Brimstone CEO Mustaq Brey said: "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."

A general meeting of Brimstone shareholders will take place on March 9 to seek their approval for the listing.

African Equity Empowerment Investments said last week it would list Premier Food and Fishing on the local bourse on March 2.

- TMG Digital/TimesLIVE