Viking deal hailed as victory for transformation in fishing industry

JSE-LISTED Brimstone Investment yesterday welcomed confirmation of approval by the Competition Tribunal of the transaction that sees its subsidiary Sea Harvest and a consortium of black-owned companies acquire the fishing business of Viking Group.

Brimstone was recently in the spotlight after the Sunday Times published a report alleging its executives were “set to score in BEE front companies”.

Brimstone dismissed the article as grossly misleading. “We vehemently deny that Brimstone is using any individual(s) to front as black empowerment components in respect of the transaction with Viking.”

Sea Harvest chief executive Felix Ratheb said: “The approval by the Competition Tribunal is hugely satisfying after many months of hard work by us and the commission.”

The tribunal’s approval, in terms of the Competition Act, comes after the transaction was approved by the Department of Agriculture, Forestry and Fisheries (Daff ) in terms of the Marine Living Resources Act.

Brimstone holds a 54.9% stake in Sea Harvest, while the consortium of blackowned companies involved in the transaction comprise Vuna Fishing, Nalitha Investments and the South African Fishing Empowerment Corporation (Safec). The latter two companies are new entrants to the industry and are wholly black-owned.

Brimstone’s executive chairperson, Fred Robertson, said: “Throughout our 22-year history, Brimstone’s partnership approach has delivered exceptional shareholder value while advancing effective transformation and inclusive empowerment. This transaction is another fine example of our model as it introduces the coastal communities represented by the consortium as new beneficiaries of this transaction.

“This transaction marks a bold new step in the transformation of South Africa’s fishing industry by introducing new B-BEEE entrants and broadening the diversity in South Africa’s fishing sector. The Competition Tribunal’s approval was the final step in a long process that will effectively further boost transformation by transferring the fishing rights from Viking Fishing to Sea Harvest, which is a majority black-owned and managed company.

“I would like to welcome the Viking people to the Sea Harvest family. We see great potential and opportunity for Viking as part of a bigger and stronger group. We take our hat off to Nico Bacon, a pioneer and entrepreneur in South Africa’s fishing industry, for the significant business he has built over the last 40 years,” Robertson said.

He added an investment of this magnitude would never be undertaken without absolute commitment to the fishing industry and the facilitation of entering new black SMMEs into the sector.

“We would like to thank Daff and the Competition Tribunal for their approvals and look forward to the long-term sustainability and growth in rural areas through job creation, transformation and local-area development this transaction will create.”

Nalitha’s managing director, Bonga Mavume, said: “The opportunity… will allow for the growth of truly black entrepreneurs in the fishing industry and will continue to turn the tide towards a transformed sector.”

Safec’s Maxwell Moss said: “We are grateful for the invitation and the facilitation from Brimstone. Corporate SA has to support B-BBEE if we are to succeed, as a nation, in realising the change that our country needs.”