Brimstone Investment : to list Sea Harvest

BRIMSTONE TO LIST SEA HARVEST

• Up to R1.5bn Private Placement

• One of the first black industrial companies to list on the JSE

• Capital-raising will provide further opportunities for organic growth, margin enhancement and strategic acquisitions

• Brimstone to retain control

  [Cape Town, 08 February 2017] Brimstone Investment Corporation Limited announced today its intention to list leading vertically integrated seafood company Sea Harvest. A capital raising of up to R1.5 billion (Private Placement) will be undertaken by Sea Harvest simultaneously with the proposed listing.

  Brimstone first invested in 53-year old Sea Harvest in 1998 with an initial 10.76% interest and today holds 85% of the company, with management and staff holding the remaining 15%. Sea Harvest has demonstrated strong growth in the last five years with 59% of its revenues generated in hard currencies, Europe and Australia are its largest international markets.

  Since taking control in 2009, Brimstone has invested c.R776 million in Sea Harvest through additional capital and reinvested profits. Sea Harvest has invested considerably in new vessels and plant efficiencies, and also used capital to acquire control (56%) of Australian listed Mareterram Limited in 2016.

  Brimstone foresees significant growth potential from Sea Harvest and capital raised through the listing will help accelerate its growth trajectory.

  "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," says Fred Robertson, Chairman of both Brimstone and Sea Harvest.

  "Sea Harvest will retain its black ownership credentials with Brimstone continuing to own more than 50% of the company post-listing. Our long-term partnership approach has worked well and this will remain a cornerstone of our investment philosophy."

  "Capital-raising will strengthen Sea Harvest's balance sheet by repaying all company debt and providing the company with the additional capital to support growth both organically and acquisitively. Organic growth will come from margin enhancements by improving efficiencies and investing further in the business. Over the past two years alone, investments of some R300 million have been made in vessels and infrastructure with a corresponding increase in margins. This has also contributed directly to the creation of new jobs."

  "Importantly, the listing will allow Sea Harvest to attract and retain management and staff through the use of tradeable instruments. This will ensure that the interests of management and staff are aligned with those of Sea Harvest's shareholders."

  "Sea Harvest has been a strong performer in our group and we expect the company, under the leadership of Felix Ratheb, to stretch capacity and capability. The company is energised and poised for growth."

  "Brimstone has established a track record of creating value in various ways for its shareholders over the years. Our role in the listing of Life Healthcare on the JSE and the significant value it created to all stakeholders is a fine example," says Mustaq Brey, Brimstone CEO.

  The listing will be subject to approvals by the majority of Brimstone shareholders, regulatory approval by the JSE and any other regulatory consents that may be required. A general meeting of Brimstone shareholders will take place on 9 March to seek their approval for the listing.

  ---ENDS---

  For media enquiries contact:

  Nisaar Pangarker [e-mail] T: 021 6831444

  C: 083 295 7114

  Issued by Corporate Image on behalf of Brimstone For more information contact:

  Tamra Capstick-Dale on 083 251 3658 or [e-mail], or

  Dayne Stern on 081 450 4380 or [e-mail]

  ABOUT BRIMSTONE

  Brimstone is a black owned and controlled investment holding company currently holding investments, in, inter alia, the food, healthcare and financial services sectors. The company was incorporated in South Africa in 1995 and listed on the JSE in the Investment Companies sector in 1998. Brimstone has over 2500 individual black shareholders, and 28 NGO shareholders who have in excess of 3.5 million beneficiaries.

  From humble beginnings, the Brimstone group now employs more than 3,500 employees in its subsidiaries and in excess of 24,000 in its associates and investments.

  As at 30 June 2016, investments include a:

• 4.7% interest in Life Healthcare Group Holdings Limited;

• 17.0% interest in Oceana Group Limited;

• 18% interest in Aon Re Africa Proprietary Limited;

• 0.9% interest in Tiger Brands Limited;

• 6.7% interest in Grindrod Limited;

• 7.0% interest in Phuthuma Nathi Investments Limited;

• 2.7% interest in MTN Zakhele (RF) Limited;

• 10% interest in Equites Property Fund Limited; and

• 25.1% interest in Obsidian Health Proprietary Limited.

The overriding theme running through all facets of the company's business is active partnership with well-established players in the particular industry that Brimstone chooses to do business in.

Brimstone has a 21-year track record of creating and unlocking shareholder value in a sustainable way and has a team with the skills and experience to conclude value adding deals. The company is defined by bona fide empowerment credentials, and its ability to enhance NAV and pay dividends. Brimstone has over the years demonstrated its resilience to withstand tough economic conditions and remains well placed to pursue value enhancing transactions based on cash generative quality assets.

The company maintains a long-term view and partnership approach to its underlying investments.

ABOUT SEA HARVEST

Sea Harvest is a leading black controlled, internationally recognised vertically integrated fishing and food business with operations in South Africa and Australia, servicing retail and food service customers in 22 countries. Established in 1964 on the Atlantic West Coast of South Africa, Sea Harvest has become a household brand and market leader in the fish category. In the 2016 Icon

Brands Survey, Sea Harvest was rated as the 7thmost iconic brand in South Africa and the highest scoring seafood brand.

Sea Harvest's principal South African business is fishing for Cape Hake, processing of the catch into frozen and chilled seafood, and the packaging, distribution and marketing of these products, locally and internationally.

Sea Harvest expanded its operations internationally in 2016, and through its 100% owned subsidiary, Sea Harvest International, owns a controlling stake in Mareterram, an Australian listed agri-business

that catches, processes and markets king and tiger prawns for the Australian domestic and international markets, and operates a nationwide foodservice sales and distribution business.

Sea Harvest owns and operates 18 deep-sea fishing vessels, which predominantly catch and process Cape hake, as well as monkfish, kingklip, sole and other by-catch species. In Australia, the Group has a further 11 prawn vessels through its subsidiary Mareterram that catch and process prawns, scallops, crabs and related by-catch species.

Sea Harvest processes and packs over 100 products for the local and international markets.

Sea Harvest's products are sold in 22 different countries. In the financial year ending 31 December 2016, 59% of revenues were from hard currencies, mainly from Europe and Australia. Locally, Sea Harvest is the leading FMCG brand in the frozen fish category. Its products are distributed and merchandised in over 2,000 retail outlets nationally. The Company is also one of the largest suppliers in the foodservice sector where it supplies its Cape hake and related by-catch products to fish and chips shops, quick service restaurants, hotels and institutional customers.