Africa-focused investment company Lonrho has said it will acquire a 51 per cent equity interest in seafood wholesaler Fish On Line for R3.5 million in cash.
Cape Town, South Africa-based Fish On Line operates bulk cold storage and fish processing facilities, wholesale seafood operations, and a global import & export business.
With its primary focus in the catering and retail sectors, Fish On Line deals in a wide range of products including prawns, lobster, salmon, pangasius, hake and kingklip.
The two companies will devise a formula for the acquisition of the remaining 49 per cent of the company within the next few weeks. Following completion of the transaction, Lonrho will provide working capital for Fish On Line to expand its existing operations and broaden its product range.
Commenting, David Lenigas, Lonrho's executive chairman, said: "The acquisition of Fish On Line strengthens Lonrho's participation in the seafood sector and delivers beneficial synergies with Lonrho's Oceanfresh, which is seeing a strong demand for its sustainably sourced, wild caught fish range from retailers globally."
London, UK-based Lonrho purchased 51 per cent of Johannesburg-based Oceanfresh Seafood in June 2010. Lonrho is active in the fish sector in South Africa and Namibia, seeing it as a market with strong growth potential both in Southern Africa and internationally.
Fish On Line was established in 1999. Its turnover for the year ending 28 February 2011 was R66 million.
