Brimstone to sell part of South Africa’s Oceana stake for about US$37.4M
The deal hands a sizeable portion of Oceana to a B-BBEE-owned consortium.
SOUTH AFRICA – Brimstone Investment has moved to dispose of nearly a third of its holding in Oceana Group in a transaction worth roughly US$37.4 million.
The company is selling about 11.95 million Oceana shares to a consortium represented by Marine Edge Capital.
The sale price is set at the equivalent of US$3.13 per share, reflecting the same value initially quoted in South African rand.
The shares offloaded by Brimstone amount to 9.2 percent of Oceana’s total equity.
Once the deal is finalised, Brimstone’s ownership in the fishing and food-processing group will fall from 25.2 percent to 16 percent.
Marine Edge Capital is a South African entity that is 51 percent B-BBEE owned and includes participants such as Silverfin Fishing Company and Blue Fin Investments.
Brimstone said the transaction follows a strategic review in which the board identified assets it could exit at reasonable valuations without affecting its long-term direction.
The company added that the cash raised will be applied toward easing its funding requirements in the near term.
The parties expect the deal to close before Brimstone’s financial year ends in December.
Oceana’s Market and Performance
Oceana Group, best known for its Lucky Star canned pilchards brand, serves lower-income consumers who favour canned fish and horse mackerel as affordable protein sources.
The Lucky Star range is sold across South Africa and in regional markets that include Botswana, Namibia and Kenya.
For the financial year ending 30 September 2025 the group generated revenue of approximately US$590.2 million, representing a 0.7 percent decline from the previous year.
The company said stronger sales volumes across all divisions and firm prices for wild-caught seafood were unable to counter the slide in international fish oil prices.
Oceana’s gross profit margin dropped to 27.8 percent, influenced mainly by weaker margins in fishmeal and fish oil operations.
Net profit after tax fell 35 percent to around US$42.7 million due to softer fishmeal and fish oil performance, higher interest charges and an increased effective tax rate.
Operating profit decreased 23.2 percent on a yearly basis to roughly US$73.8 million.
The group reported a slight rise in net debt to about US$153.5 million, noting that reduced US-dollar borrowings were offset by a greater debt load in South African rand.
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