Investment Holding Brimstone announced it plans to acquire eight million ordinary shares of Oceana by Tiger Brands. That represents 5.9% of Oceana's shares.
The sale of the shares follows Tiger's announcement in December that it will sell 42.1% of its shares to the fishing company as it is not the core of the food and beverage business.
The main activity of Oceana is the catching, processing, marketing and distribution of canned fish, fishmeal, fish oil, lobster, horse mackerel, squid and hake.
Tiger Brands is the largest packaged food producer in Africa.
Tigger struggles to find his mojo after several years of economic growth, bad investment in Nigeria and the outbreak of Listeriosis last year. Chief Executive Lawrence McDougall is doing everything in its power to ensure that the company focuses on its oats, but shareholders will welcome an approximately $ 4 billion increase in balance after the sale of the shares is complete.
Brimstone has been invested in Oceana for 23 years and has a 17% stake. The deal will take its share to 22.88%, which will further enhance Oceana's BEE profile. This will be useful when the company applies for new fishing quotas.
The purchase price of the shares will be R72.67958 per share (based on the 10-day weighted average price per share of Oceana, calculated by the end of the trading on January 23, 2019) and the deal should be concluded by the end. from February.
Brimstone will pay R581 million for the stock, which will result in a capital gain of about EUR 282 million for the Tiger. This should increase the net asset value of Tiger (and ordinary shareholders) by about € 256 million and earnings per share of about 170 cents.
Tiger Brands will release its remaining 49.1 million Oceana shares in the second quarter of the year.