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Brimstone Investment Corporation Ltd., the Cape Town investment group co-founded and run by South African businessman Mustaq Brey, has agreed to sell part of its holding in Oceana Group Ltd. for R633.4 million ($37.4 million). The move forms part of a broader effort to tidy up the company’s balance sheet and lower funding commitments after a review of its portfolio.
Brimstone reshapes portfolio with Oceana sale
In a statement, Brimstone said its wholly owned subsidiary Newshelf 1063 reached a binding agreement on Dec. 3 to sell 11.95 million Oceana shares to Marine Edge Capital at R53 ($3.13) per share. The company noted that the deal does not require regulatory or shareholder approval and is expected to close around Dec. 10. Under Johannesburg Stock Exchange rules, the sale is classified as a Category 2 transaction.
The board’s strategic assessment earlier this year identified several assets that could be sold without undermining Brimstone’s core investments. Oceana, a major player in South Africa’s fishing and canned-food industry, was included in that group. According to Brimstone’s unaudited half-year results, the net asset value of the shares sold was R1.03 billion ($60.84 million), with attributable profit of R42.1 million ($2.48 million) for the six months through June.
Dividend date may cut purchase price
Marine Edge Capital is a 51 percent Black-owned local consortium with interests in fishing companies such as Silverfin Fishing Co. and Blue Fin Investments. As part of the agreement, Marine Edge must keep its Black ownership above 51 percent for at least two years after the deal closes. The contract also includes conditions linked to Oceana’s final dividend for the year.
If the dividend’s last-trade date of Dec. 19 falls before the deal is completed, Brimstone will receive the payment but must accept a reduction in the purchase price equal to the dividend amount. If the dividend is late, the payout will go to Marine Edge with no change to the price.
Brimstone has also agreed not to sell its remaining Oceana shares for six months following the closing date. Any sale within the 12 months after that must first be offered to Marine Edge, which has the right to match the terms. If no agreement is reached within 15 business days, Brimstone may seek another buyer on terms no better than those presented to Marine Edge.
Mustaq Brey leads Brimstone with purpose
Brey, who co-founded Brimstone in 1995, has long been a prominent figure in South Africa’s investment community. He serves as chairman of Oceana Group and International Frontier Technologies, sits on the board of AON Re SA, and chairs several committees and trust bodies, including those connected to the Mandela Rhodes Foundation and Groote Schuur Hospital.
Under his leadership, Brimstone has grown into a diversified investment group with more than 5,400 employees across its subsidiaries and more than 33,000 in associates and linked businesses. The company focuses on long-term holdings in sectors that can generate steady earnings and support job creation. Brimstone’s share price has risen about 11 percent over the past month, trading at R5 ($0.29), bringing its market valuation close to $90 million.
