Sea Harvest to back Style raising

South African fishing company Sea Harvest Group has committed to take its maximum possible entitlement under a planned $16 million-plus capital raising by Perth company Style.

The Peter Hutchinson-chaired Style is planning to move into the agribusiness sector though the two acquisitions – Nor-West Seafoods, and the food services division of Craig Mostyn Group, which is primarily engaged in the importing and distribution of seafood and potato products.

The latter deal included a requirement for supply and distribution agreements with Sea Harvest to be novated to Style subsidiary Mareterram Trading.

It also included arrangements for Sea Harvest to take equity in Style, which intends to change its name to Mareterram.

Sea Harvest has confirmed it will apply for the maximum possible number of shares in the capital raising, so that its shareholding in Style will be 19.9 per cent.

This is conditional on Style raising a minimum of $16 million and a maximum of $18 million at an issue price of 20 cents per share.

Broking firm Euroz Securities will manage the planned capital raising.

Sea Harvest is one of the largest integrated fishing companies in South Africa, with 12 deep-sea fishing trawlers and employing 2,400 people.