EXEO Capital confirmed an undisclosed investment in TerraSan via its
Agri-Vie Fund II. EXEO joins Trustee Board Investments (TBI) – a backer of
JSE-listed companies Accentuate and Efficient — as a key shareholder in
TerraSan.

The investment is EXEO’s second tilt at aquaculture with its Agri-Vie
Fund I already an investor in HIK, a Hermanus-based abalone farming venture.

While EXEO highlighted the growth potential of abalone farming, TerraSan
also owns substantial pelagic fishing interests, as well as mussel and fishmeal
ventures. TerraSan also acquired fish canning specialist, the Saldanha Group,
in 2017.

Kennett Sinclair, a partner at EXEO Capital, said the breeding of fish
and other aquatic animals under controlled conditions continued to gain
popularity as wild-caught fish numbers decreased. Aquaculture had also achieved
rapid growth in SA, given the high-value export-oriented nature, local
government support and expansion opportunities, he said.

“The fundamentals driving the aquaculture industry globally as well
as in sub-Sahara Africa support the strategic rationale for the
transaction.”

EXEO acquired new shares in TerraSan, but the value of the capital
injection was not disclosed. Sinclair believed the partnership could prompt
expansion and value-adding opportunities at TerraSan.

Two JSE-listed companies are involved in abalone farming – recently
listed Premier Fishing & Brands (PremFish) and consumer brands conglomerate
AVI via its controlling stake in fishing group I&J. Oceana, the largest
fishing group on the JSE, has also indicated a willingness to invest in
aquaculture.

TerraSan’s strategy was to grow organically by expanding its abalone and
mussel production facilities, improving the quality of its bulk fishmeal and
becoming the processing home for the smaller quota holders in the small pelagic
fishing industry, Sinclair said.

Source: Business Day