Oceana Group Announces The Disposal Of Commercial Cold Storage Group Limited
Oceana Group Announces The Disposal Of Commercial Cold Storage Group Limited. Oceana is pleased to announce that on 03 October 2022 it entered into transaction agreements to dispose of its cold storage business, Commercial Cold Storage Group Limited, trading as CCS Logistics (“CCS Logistics”), for a total consideration of R760 million net of the value accruing to minority interests in the Namibian (CCS Namibia (Pty) Ltd 31%) and Duncan Dock (CCS Ports (Pty) Ltd 30%) operations. The implied 100% enterprise value including minorities is R895 million.
The purchaser is a special purpose vehicle owned by a consortium comprised of (i) Old Mutual Life Assurance Company (South Africa) Limited (acting on behalf of the Infrastructural, Developmental and Environmental Assets (“IDEAS”) Managed Fund) (“IDEAS Fund”) and the African Infrastructure Investment Fund 4 Partnership (“AIIF4 Fund”). Both the IDEAS Fund and AIIF4 Fund are managed by African Infrastructure Investment Managers , (ii) Bauta Logistics Ltd, and (iii) Mokobela Shakati (Pty) Ltd (“Mokobela Shakati”).
CCS Logistics, a wholly-owned subsidiary of Oceana, is a leading cold storage provider in Southern Africa offering primary temperature-controlled storage and handling services of mainly perishable products on behalf of major manufacturers, exporters and importers. CCS Logistics has six cold storage facilities with a storage capacity of about 100,000 pallets across South Africa and Namibia.
The Transaction will enable Oceana to allocate capital to opportunities more aligned to its strategic objectives and core strengths in the global fish protein sector, while the Purchaser has ambitious goals of expanding the CCS Logistics footprint on the African continent. The Transaction includes agreements for Oceana Group entities to secure medium term cold-storage services from CCS Logistics at market related rates and for Oceana to continue providing transitional services at an agreed service fee to CCS Logistics for a period of at least 12 months following implementation.
