South Africa’s Sea Harvest has proposed a proportional takeover of Western Australian seafood company Mareterram.

Mareterram is split into two divisions, Mareterram North West and Mareterram Foods. Mareterram North West is the fishing division of the company, located in Shark Bay, Western Australia. It catches prawns, scallops, crabs and cuttlefish. Mareterram Foods sells and markets the seafood caught by Mareterram North West.

Sea Harvest, one of South Africa’s largest fishing companies, is proposing a Bid Implementation Agreement (BIA) to acquire 1 out of every 2 shares held by Mareterram shareholders of AUD $0.35 per share.

Sea Harvest is already the largest shareholder in Mareterram, currently holding voting power of 19.9 per cent.

The offer is conditional upon Sea Harvest attaining a 50.1 per cent shareholding.

Mareterram says if shareholders choose to accept the offer, Sea Harvest’s ownership of Mareterram shares will increase up to a maximum of approximately 59. 6 per cent for a total cash consideration of approximately AUD $19.7 million.

Felix Ratheb, Chief Executive Officer of Sea Harvest, said the offer demonstrated confidence in the Australian fishing company.

“Sea Harvest will continue to support Mareterram’s Board and management and their strategy,” Ratheb said.

“We believe by increasing Sea Harvest’s shareholding we can better partner and assist Mareterram in achieving its goals, especially in relation to its growth and diversification objectives,” he said.

Sea Harvest was established in 1964 and sells a wide variety of frozen fish products including fillets, fish fingers and fish cakes. It current exports a large variety of its products overseas. It has fresh fish processing plants in Saidanha and Mosel Bay in South Africa.

David Lock, Chief Executive Officer and Managing Director of Mareterram backed the BIA.

“This transaction reinforces our strategic direction and will help us deliver our strategy to drive long term value creation for all Mareterram shareholders,” Lock said.

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