Jobs saved at Viking Fishing
The Sea Harvest Group is said to be acquiring rival, Viking Fishing Holdings, and has recently received approval from the Department of Agriculture, Forestry and Fisheries (DAFF) for this transaction.
Tom Seaman writes in www. undercurrentnews.com that Sea Harvest sees the deal for Viking as “transformative”, as it allows for the diversification into other species and aquaculture. The deal includes 51% of Viking Aquaculture, established in 2011, which holds interests in abalone, finfish, mussel and oyster farms.
Undercurrent News states that Viking notified the government in December of its plans to sell fishing rights across nine sectors to a consortium. The consortium is led by Sea Harvest and includes the SeaVuna Fishing Company, Nalitha Investments and the South African Fishing Empowerment Corporation. According to a source close to the deal, the R130m figure only relates to the fishing rights, not Viking’s assets.
Jobs protected
“The most positive aspect of the transaction is that, by pooling the operations of Viking and Sea Harvest, which are mainly complementary, all 1 400 jobs at Viking are protected. There will be a cash payout to Viking staff due to their 20% ownership in the company through the staff trust,” said Undercurrent News' source.
“Viking was founded by Nico Bacon in 1980 and he has built a solid business with quality assets in both fishing and aquaculture. The business is very complementary to that of Sea Harvest, allowing synergies that will help Sea Harvest grow, especially in the aquaculture space," Felix Ratheb, CEO of Sea Harvest, told Undercurrent News. “Most importantly, all jobs are protected and the deal will create new growth opportunities for employees in both companies."
Viking replies
“Viking did extensive research on the various options open to it after the Fishing Rights Allocation Process (FRAP) 2015 results.
"It was our belief that this transaction would be good for Viking staff, going forward, as cultures are similar and business will continue with minimal disruption.
"Sea Harvest is a trade player and understands what needs to be done going forward.
"The deal will secure the jobs of our 1 400 employees, especially the going concern of the Mossel Bay operation which was at risk of closure following the 2015/16 Frap results," Viking Group operations director Tim Reddell told the Mossel Bay Advertiser.