23 May 2019 10:51:38 AM

Tiger Brands sells Oceana Group shares

- 2019-01-24 10:27:39 AM
On 22 November 2018, Tiger Brands advised shareholders that the Board has decided to pursue an unbundling of Tiger Brands' shareholding in Oceana.

Shareholders are advised that Tiger Brands has received and accepted a conditional but binding offer from Brimstone Investment Corporation Limited ("Brimstone") in terms of which Brimstone will acquire 8,000,000 ordinary shares in Oceana (the ?Oceana Shares?), which represents approximately 5.9% of Oceana?s total shares currently in issue (the "Transaction").

Brimstone is a black controlled and managed investment company incorporated and domiciled in South Africa and is an existing shareholder in Oceana, with a 17.0% shareholding. The Transaction will further strengthen Oceana?s Black Economic Empowerment ownership profile.

Shareholders are referred to the announcement made by Brimstone today for further details of the Transaction. Completion of the Transaction is subject to the fulfilment of certain conditions precedent, which are set out in the Brimstone announcement. The effective date of the Transaction will be the first business day after the date of fulfilment of the last condition precedent. The conditions precedent are required to be fulfilled by no later than 17h00 on 28 February 2019.

The purchase price for the Oceana Shares will be ZAR 72.67958 per share (which is based on the 10-day volume weighted average price ("VWAP") of an Oceana share, calculated up to the close of trading on 23 January 2019).

The total purchase price will amount to ZAR 581 million, resulting in a capital profit of approximately ZAR 282 million. It is expected that the Transaction will increase Tiger Brands? net asset value (and ordinary shareholders funds) by approximately ZAR 256 million and earnings per share by approximately 170 cents. The Transaction is anticipated to have a minimal effect on headline earnings per share.

Tiger Brands is proceeding with the necessary steps to complete the unbundling of the remaining 49,104,774 Oceana shares during the second
quarter of the 2019 calendar year. A further announcement will be made once the Transaction has been