Premier concludes controlling stake in Talhado, South Africa
JSE-LISTED Premier Fishing and Brands has acquired a 50.3 percent stake for R85 million in the Talhado Fishing Group in South Africa after the competition authorities and the department of agriculture, forestry and fisheries (Daff) gave the transaction the green light yesterday).
Premier chief executive Samir Saban said the approval saw the group fulfilling all the outstanding conditions to the transaction.
Saban said Talhado would extend Premier Fishing’s footprint in Europe. He said Talhado would be a strategic value-add to the group.
“This acquisition would lead to further synergies among the existing operations and enhance value to all stakeholders of Premier,” Saban said.
Premier Fishing is one of the largest black owned and managed fishing companies in South Africa.
The deal was first announced in October last year, with the effective date of acquisition being in November, making it one of the largest transaction made by Premier since its listing in March 2017.
Saban said Talhado had a solid asset base in the squid sector and the benefits were expected to be realised within the short- to medium-term.
“This acquisition is expected to complement Premier’s diversification strategy and product basket. Premier’s current products include south and west coast rock lobster, pilchards, anchovies, hake, squid and abalone,” Saban added.
Talhado is based in the Port Elizabeth harbour and is involved in the catching, processing and marketing of squid, with both sea and land-based freezing facilities and operates from the east coast.
Talhado is the largest squid player in the South African fishing squid sector.
Talhado chief executive Malcolm Stanley said the transaction was mutually beneficial to both groups.
Stanley said Talhado would benefit on Premier’s excellent market reputation, governance and overall performance and track record. He said relations between the groups were solid.
“At the moment we are on a high after two good catching seasons, combined with a good market and reasonable exchange rate. We have a comprehensive and well established set of agents throughout Southern Europe to market our highly sought after products and brand. We are currently pursuing a number of joint opportunities both locally and internationally and are confident the partnership will grow from strength to strength,” Stanley said.
Talhado’s reported net asset value and profitability for the year to end August 2017 was R59.5 million and R50.6m, respectively.
Group chief executive of African Equity Empowerment Investments (AEEI) and deputy chairperson of Premier Fishing Khalid Abdulla said the fact that existing Talhado shareholders had retained a significant minority stake was telling. “It shows mutual shareholder trust which will help grow the business as they know that we understand the fishing market.
Now that the deal is fully concluded, we welcome Talhado to the AEEI and Premier Group and look forward to the continued growth prospects and expertise that Talhado brings to Premier,” Abdulla said. Source : Business Report