Tiger Brands will sell a part of its shareholding in South African fishing company Oceana Group to Brimstone Investment Corporation, which already owns a 16.98% stake in Oceana, for about R581-million.
The parties have agreed that Brimstone will acquire about eight-million Oceana shares, representing 5.9% of the fishing company’s shares in issue. This will raise Brimstone’s shareholding in Oceana to 22.88%.
Tiger announced last year that it had decided to pursue an unbundling of its shareholding in Oceana.
Following the transaction with Brimstone, it will still hold about 49.1-million Oceana shares, which it hopes to sell in the second quarter of this year.
Brimstone, meanwhile, on Thursday commented that the transaction would further strengthen Oceana’s black economic empowerment (BEE) ownership profile.
Brimstone has been invested in Oceana for 23 years and continues to believe in the future of Oceana, and considers it important to further strengthen Oceana’s BEE credentials, Brimstone said in a statement on Thursday.