Tiger Brands will facilitate the largest empowerment deal so far in the country’s fishing industry, the food company said on Friday.
It advised shareholders that it had received a R541-million cash offer from a consortium led by Brimstone, which included key members of Sea Harvest management, to acquire Tiger Brands’ 73,16% stake in its partly-owned subsidiary company Sea Harvest.
The offer was accepted by Tiger Brands.
”Brimstone has from time to time indicated a desire to increase its shareholding in Sea Harvest … This transaction enables Tiger Brands to assist Brimstone in achieving its objectives and will result in a significant increase in Sea Harvest’s empowerment shareholder base,” said Peter Matlare, CEO of Tiger Brands in a statement.
Brimstone and its partners believed they were well placed to assist Sea Harvest in strengthening its position as a market leader.
Matlare said Brimstone was familiar with the operations of Sea Harvest and was positive about the long-term outlook of South Africa’s fishing industry.
The transaction was subject to a number of conditions before it became final.
Sea Harvest is a deep-sea trawler fishing and fish processing company situated close to the fishing grounds of the cold Benguela ecosystem.
Established in 1964, Sea Harvest is based in Saldanha Bay on the West Coast, about 140km from Cape Town.
Sea Harvest employs approximately 2 200 people and operates a fleet of 14 fresh fish trawlers and one factory freezer ship. – Sapa