MARC HASENFUSS: Daybrook leaves Oceana dangling
Shareholders will again question the decision to angle for what is likely to remain a feast or famine business
Long-term shareholders in fishing group Oceana will have plenty to carp about these days. With the profit contribution from its US-based Daybrook fish oil and fishmeal operations markedly diminished, there will again be questions — and, quite frankly, the odd conspiracy theory — about the decision to shift abroad so boldly 10 years ago.
The numbers are hard to digest. Before Oceana made the R4.6bn acquisition of Daybrook and embarked on a R1.2bn rights issue, the group carried a market value of about R8bn on the JSE. At the time of writing, Oceana reflected a market value of R7bn; this will naturally fuel crude arguments about how much value Daybrook, which has been an inconsistent profit generator, has added to proceedings. Back in mid-2015, though, the Daybrook deal was received with some enthusiasm. The acquisition not only added a serious hard currency earnings element to Oceana, it also fed its catch product into sweet spots in aquaculture and pet food — and Daybroo...
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