Oceana is selling its cold storage business as it looks to allocate capital to opportunities in line with its strategic objectives and its core strengths in the global fish protein sector.
The deal, finalised on Monday, will see the R6.9bn company sell its smallest segment by revenue for R760m to a special-purpose vehicle owned by a consortium consisting of Old Mutual, IDEAS Fund and AIIF4 Fund, both managed by African Infrastructure Investment Managers, Bauta Logistics, and the Mokobela-Shataki Consortium, which is backed by Safika Holdings founder Moss Ngoasheng and Royal Bafokeng Holdings chair Monhla Hlahla.
The cold-storage business, which trades as CCS Logistics, provides cold storage and handling services in Southern Africa for mainly perishable products on behalf of major manufacturers, exporters and importers. The subsidiary has six cold-storage facilities with a storage capacity of about 100,000 pallets in SA and Namibia.
According to Oceana’s 2022 interim results, commercial cold storage and logistics was the smallest business segment by revenue, generating 4.3% of the R3.18bn total revenue. The revenue of commercial cold storage and logistics fell 28.5% year on year to R135.5m in the six months to end-March.
Africa’s largest fishing group said in Tuesday’s statement that the buyer wanted to expand CCS Logistics on the continent.
Storage levels were down 9%, Oceana said in its interim results, mainly because of the higher global costs and availability of containers and the resulting lower import levels through Cape Town. Lower chicken volumes in Gauteng also added to this.
Commenting on the sale, Small Talk Daily analyst Anthony Clark said that even though the cold storage business is owned by a fishing company, its main import was frozen chickens, vegetables and French fries.
“Given that the rand is where it is, the imports of chicken have plunged so far this year and we have the additional duty on French fries, it doesn’t surprise me that volumes have been low,” he said.
“I think it’s a good deal for Oceana. It focuses their business back onto local and international fishing, as well as value-added fishing goods like Lucky Star,” he added.
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