Mackerel added to Mareterram catch

Shark Bay shellfish producer Mareterram is expanding into the mackerel business with the $4.95 million purchase of an established fishing fleet, support vessels, and licences.

Mareterram managing director David Lock said the licences would provide an entry into the Western Australian mackerel managed fishery, complementing the company’s existing portfolio of prawn, crab and scallop operations.

“This acquisition is a natural growth path for us, as we aim to maximise value from the profitable mackerel industry in Western Australia,” he said.

The purchase will give Mareterram about 30 per cent of the WA mackerel managed fishery.

Five vessels, two larger ones and three smaller vessels known as dories, will be added to the company’s existing 11-vessel fleet.

The South Fremantle-based company plans to consolidate the licences onto a single large vessel, where the mackerel will be filleted and snap frozen, and sell the surplus vessel.

The acquisition will be funded with $2 million in debt and a conditional placement of shares at $0.25 per share to raise $3.75 million. Mareterram has received binding commitments for the placement.

Mareterram’s largest shareholder, Sea Harvest, has committed to maintaining its 55.89 per cent interest by investing in the placement. Several Mareterram directors will also participate, subject to shareholder approval.

The placement will go up before shareholders at a general meeting expected to be held on December 12.

Mareterram began trading on the ASX in January last year after raising about $18 million from investors and completing a major corporate restructure.

Mareterram shares were up 1 cent to 28 cents at 11am today.