Cape Town – Oceana CEO Francois Kuttel has resigned, as he plans to take on a controlling stake in the vessel company in which Oceana [JSE: OCE] has a 25% stake.
The share price dropped less than a percent (0.8%) on the news, trading down from R83.50 to R82.70.
According to a notice issued to share holders on Tuesday afternoon, Kuttel, a US citizen, plans to take on a controlling stake (75%) of Westbank Fishing. Westbank operates vessels which supply fish to Daybrook Fisheries processing plant. Oceana had acquired Daybrook in July 2015.
The US American Fisheries Act (AFA) requires fishing vessels in the US to be owned and controlled by US citizens.
A bidding process was launched to acquire the 75% stake in Westbank after it became available. Kuttel expressed an interest. “After thorough deliberation the Independent Committee identified Mr Kuttel’s proposal as being the most attractive to Oceana and Daybrook Fisheries,” the notice read.
As a result Kuttel has tendered his resignation with immediate effect as discussions on the Westbank interest has reached the level of legal agreements. These legal agreements are subject to board approval.
Rodney Gerald Nicol has been appointed as interim CEO, effective March 1 2018. He served as an executive director on the Oceana board for 22 years until his early retirement in 2013.
* Sign up to Fin24’s top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.