Tiger Brands to sell part of its Oceana shares to Brimstone

Tiger will still hold about 49.1 million Oceana shares.

Investment holding group Brimstone announced on Thursday that it will acquire eight million ordinary shares in South African fishing company Oceana shares from Tiger Brands, a JSE-listed packaged-food maker.

The eight million ordinary shares represent 5.9 percent of Oceana’s shares in issue. The purchase of shares will raise Brimstone’s shareholding in Oceana to 22.88 percent.

The sale of shares follows Tiger’s announcement in December that it will sell its 42.1 percent stake in the fishing company, as it is not core to its food and drinks business.

Oceana’s core business is the catching, processing, marketing and distribution of canned fish, fishmeal, fish oil, lobster, horse mackerel, squid and hake. Following the transaction with Brimstone, Tiger will still hold about 49.1 million Oceana shares, which it hopes to sell in the second quarter of this year.

Tiger is battling with South Africa’s low economic growth, poor investment decisions in Nigeria and the Listeriosis outbreak in 2018. 

Brimstone said the transaction would further strengthen Oceana’s black economic empowerment ownership profile.

Brimstone has been invested in Oceana for 23 years and continues to believe in the future of Oceana. The company considers it important to further strengthen Oceana’s BEE credentials.