Sea Harvest Debuts on the JSE Main Board under Share Code: SHG - Sea Harvest : Sea Harvest

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Date Posted: 23 March 2017

Sea Harvest Debuts on the JSE Main Board under Share Code: SHG

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. Pictured above is Felix Ratheb, CEO of Sea Harvest (left) and Fred Robertson, Non-Executive Chairman of Sea Harvest and Executive Chairman of Brimstone (right). Photographer: Ilan Ossendryver.

The listing marks an exciting and rewarding moment in Sea Harvest’s 53 year journey, which began with a fishing operation in the Cape West Coast town of Saldanha in 1964. In the years that followed, the company pioneered the development of international markets for Cape Hake, which has evolved into one of the world’s most sought-after whitefish species.

"Globally consumers know that when they purchase South African Cape Hake, they are buying superior quality from a well-managed fishery," says Sea Harvest Chief Executive, Felix Ratheb. Today Sea Harvest is a vertically integrated seafood company with operations in South Africa and Australia and leading FMCG brands and species in both local and international seafood market. The company is one of the largest black-owned fishing companies in South Africa with operations that sustain 3,000 jobs in rural parts of the country. Post listing, Sea Harvest will retain its strong transformation credentials.

Through the capital raise, Sea Harvest will settle all debt and continue to fund its growth trajectory, which is underpinned by the recent c.R500 million outlay on vessels and infrastructure to improve operational efficiencies, long-term sustainability and margins, as well as the acquisition of a 55.9% majority stake in Australian Stock Exchange listed agribusiness, Mareterram. "We are pleased to have partnered with Sea Harvest, a long term client of Standard Bank, in their listing on the JSE," says Richard Stout, Head: Equity Capital Markets, South Africa and Sub-Saharan Africa, Standard Bank. "This listing provides an exciting new opportunity for investors who are looking to participate in the food sector. This transaction also highlights the continued activity and interest we have seen in the South African IPO space recently." Standard Bank acted as Sole Financial Advisor, Sole Bookrunner and Sole Transaction Sponsor for the company. Sea Harvest will be pursuing organic growth through further margin-enhancing investment in its fleet and factories, as well as acquisitive growth in South Africa and Australia.

Brimstone has, meanwhile, retained a majority 55% share of the Group and is committed to remaining invested and supporting Sea Harvest’s growth story. Board Chairman and Chairman of Brimstone, Fred Robertson, says, "We have been a shareholder in Sea Harvest since 1998 and invested a further c.R776 million into the business since taking control in 2009. Sea Harvest is a quality asset with, established brands in the FMCG sector, a good management team, a global revenue mix and over 3000 exceptional employees."

"The Department of Agriculture, Forestry and Fisheries (DAFF) have created a well-managed fishery that is internationally recognised and lauded. Sea Harvest is aligned with government’s transformation objectives and will continue to be so in the future. The company further has a unique community focus and enjoys the support of a wide range of stakeholders, including community leaders, service providers and business partners, many of whom have grown alongside the company," concludes Robertson.

Nicky Newton-King, CEO of the JSE says: "The exchange is pleased to welcome Sea Harvest to the main board. Sea Harvest is owned and controlled by Brimstone which has a variety of investments in industries such as food, healthcare, financial services and infrastructure, and is also a black controlled company. We are delighted in acquiring another company that is part of Brimstone, who are committed to the transformation of our country and the broader SA economy. Transformation in our country’s capital markets is important to us and this listing represents the progress being made in providing South Africans with an opportunity to invest in companies that boast strong transformation credentials."

At the time of issuing this release, the Sea Harvest share price was trading at R13.45.

Media Publications:

CNBC Africa Video:
http://gallery.cnbcafrica.com/video/?bctid=5369457609001

Fin24:
http://www.fin24.com/Companies/Agribusiness/sea-harvest-hits-ground-running-on-jse-after-raising-r13bn-20170323

IntraFish:
Sea Harvest CEO Blockbuster listing provides "ammunition" it needs to grow:
Click here to view the PDF

Under Current News:
https://www.undercurrentnews.com/2017/04/04/sea-harvest-likely-to-look-at-resource-based-ma-in-australia/

Business Live:
https://www.businesslive.co.za/fm/fm-fox/good-week-bad-week/2017-03-30-good-week-for-sea-harvest-and-bad-week-matshela-koko/

Seafood News:
http://www.seafoodnews.com/Story/1055600/Sea-Harvest-Casts-its-Net-Back-Onto-JSE-After-17-Years

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