BEE a marathon, not a sprint for Sea Harvest as firm heads to JSE

Johannesburg – The listing of Sea Harvest is an example of what can happen if you are prepared to stay the course long term to add value for your shareholders, Mustaq Brey, CEO of Brimstone Investment Corporation, told Fin24 on Wednesday.

Seafood company Sea Harvest, a subsidiary of Brimstone, plans to list on the Johannesburg Stock Exchange.

"We keep on being told BEE companies are just for 'quickies', but I think we have now shown BEE is a long-term matter. BEE should be seen as a marathon, not a sprint. We are now going global. Sea Harvest is in Australia and its products are being sold in 22 countries," said Brey.

"We have been in this business for 19 years and we believe the time is right now to list Sea Harvest. We will use the money raised to retire some debt, repay Brimstone and with the money left we will do some other transactions."

Sea Harvest was first established in 1964 with operations in South Africa and Australia with leading brands in the fast-moving consumer goods (FMCG) sector. It is also one of the largest black-owned fishing companies in South Africa.

“Listing will allow the group ongoing access to national and international equity capital, enabling the company to continue investing in its people, vessels, factories and markets in order to enhance margins in an attractive international seafood market,” according to chief executive Felix Ratheb.

Proceeds of up to R1.5bn from the listing will be used to repay debt and further investments.

After listing, black-controlled and managed investment company Brimstone will remain the majority shareholder.

“The listing will allow us to continue building a sustainable black-owned fishing company that will generate a return for all its shareholders and be a true asset to the South African economy,” stated Fred Robertson, Brimstone’s executive chair.

Brimstone first invested in Sea Harvest in 1998 with an initial 10.76% interest. Today it holds 85% of the company, with management and staff holding the remaining 15%. 

“The listing will add further impetus to transformation in South Africa, and is strongly aligned with government’s strategy to increase the number of black industrialists,” said Robertson.

The listing will be subject to approvals by the majority of Brimstone shareholders, regulatory approval by the JSE and any other required regulatory consents.

A general meeting of Brimstone shareholders will take place on March 9 to seek their approval for the listing.