INVESTMENT
Brimstone Investment Corporation sells R387m stake in Tiger Brands
Enduring empowerment company Brimstone Investment Corporation has confirmed the sale of R387m worth of shares in food brands conglomerate Tiger Brands. Brimstone, which has a market capitalisation of about R3.2bn, was a participant in Tiger’s empowerment scheme. Its decision to sell was not entirely unexpected. The company detailed arrangements late in 2017 for a forward sale of 600,000 shares at R374.80 a share for the first quarter of 2018. According to a Sens announcement, Brimstone’s wholly owned subsidiary, Brim Tiger SPV, disposed of about 1.81-million Tiger shares in three separate transactions. In terms of the original black economic empowerment (BEE) deal, Tiger was entitled to repurchase a certain number of the shares held by the Brimstone SPV after lock-in period expired at the end of 2017. In this arrangement, Tiger repurchased 861,257 Tiger shares from the Brimstone SPV at 740c a share, or R6.4m. In a second tranche, the Brimstone SPV sold 352,356 Tiger shares on the op...
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