Foodcorp: Oceana agrees to acquire fishing unit

Foodcorp has entered into a heads of agreement with Oceana Group for the sale of its fishing division, worth R445 million. This was announced yesterday by both Oceana and Rainbow Chicken, which holds a majority stake in Foodcorp. Among other things, the division’s activities include hake, pilchard and anchovy fishing, canning and on-shore processing. Oceana said West Coast rock lobster and hake long-line fishing rights were excluded from the deal. Oceana said: “The Foodcorp division will be acquired as a going concern, including some assets and all working capital and employees but excluding any taxation related assets or liabilities.” The transaction is subject to departmental approval for the transfer of the fishing rights, approval by the competition authorities and conclusion of a formal agreement with detailed terms. Oceana shares rose 3.49 percent to R89, while Rainbow Chicken rose 1.4 percent to R15.88. – Nompumelelo Magwaza