Brimstone Investment is selling nearly a third of its shareholding in Oceana Group, the South African fishing and food-processing company.
The investment firm will offload around 11.95 million Oceana shares to a consortium represented by Marine Edge Capital.
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The shares, representing 9.2% of Oceana’s stake, will be sold at R53 apiece, for a total consideration of around R633.4m ($37.4m).
Following the deal, Brimstone’s stake in Oceana will fall from 25.2% to 16%.
Marine Edge Capital is a 51% B-BBEE-owned South African company run by a fishing industry consortium that includes Silverfin Fishing Company and Blue Fin Investments.
Regarding the rationale for the sale, Brimstone said: “Further to the strategic review undertaken by the board of directors of the company of its investment portfolio regarding its long-term strategy, the board has identified assets that it believes can be disposed of at acceptable valuations without jeopardising this strategy, with Oceana being one such asset.”
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By GlobalDataThe firm said it will use the sale proceeds to reduce funding obligations in the “near term”.
The transaction is expected to close before Brimstone’s December financial year-end.
Oceana Group says “the lower-end consumer”, preferring canned fish and horse mackerel, forms its “principal market”.
It is best known for the sale of canned pilchards under the Lucky Star brand.
The brand is marketed in South Africa and other African markets including Botswana, Namibia and Kenya.
For the year ended 30 September 2025, Oceana Group’s revenue dropped by 0.7% to R10bn.
According to the company, the “positive impact of increased sales volumes across all segments and firm pricing for wild-caught seafood” was “offset by the decline in US dollar fish oil prices”.
Gross profit margin fell to 27.8%, largely driven by lower margins in the fishmeal and fish oil categories.
Profit after tax dropped 35% to R724m, reflecting the “weaker fishmeal and fish oil segments operating performance, increased net interest expense and higher effective tax rate”.
Operating profit declined 23.2% year-on-year to R1.25bn.
The group said its net debt rose “marginally” to R2.6bn, with a reduction in US dollar debt offset by an increase in South African rand debt.
