Brimstone CEO Mustaq Brey. Picture: SUNDAY TIMES
Brimstone CEO Mustaq Brey. Picture: SUNDAY TIMES

Investment holding company Brimstone, the biggest shareholder of Sea Harvest, said on Monday it spent R35.7m increasing its stake in Obsidian Health to 80% as it seeks additional controlling interests in unlisted companies.

Brimstone previously held 25% of Obsidian, which provides capital equipment and medical devices to both private and public hospitals within sub-Saharan Africa.

The acquisition was in line with Brimstone’s strategy of having control and increasing the portfolio of unlisted assets, said CEO Mustaq Brey.

“Having been invested in this business for a long time, we have a deep understanding of the dynamics and metrics of this business, and will continue to add value and benefit Obsidian Health with our strong empowerment credentials,” Brey said.

Brimstone has bulked up its healthcare exposure, after lifting its stake in Obsidian Health. Brimstone CEO Mustaq Brey spoke to Business Day TV about the acquisition, and what it means for the company going forward.

Brimstone, which had a market capitalisation of about R1.5bn, had made news in 2019 when it pulled out of a consortium that wanted to buy Clover Industries, amid protests over the participation of an Israeli company.

Brimstone was due to have a 15% stake in the consortium, and said during the release of its half-year results to end-June that exiting the deal cost it R55m.

The group had reported an interim loss of R84.3m an improvement from a loss of R227.1m in the previous comparative period.

At 9.15am on Monday Brimstone’s share price was unchanged at R7.50, having fallen 22.04% over the past year.

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