Brimstone takes control of Obsidian


Brimstone takes control of Obsidian

Published Date: 2020-02-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Brimstone takes control of Obsidian

The transaction fits its strategy of having control or significant influence over its portfolio of unlisted investments.

Brimstone Investments has raised its stake in Obsidian Health as part of its strategy to have control and more influence over its portfolio of listed and unlisted assets.

The black investment company has bought an additional 55% stake in Obsidian for R35.7 million, taking its holding to 80%. Obsidian supplies healthcare solutions to the private and public healthcare sectors in Sub-Saharan Africa, including capital equipment and medical devices with a focus on cardiology, cardiovascular, theatre, ICU and high care, orthopaedics as well as point of care diagnostic testing. It has long-term partnerships with a number of multinational healthcare companies on the continent.

Brimstone controls JSE-listed fisheries group Sea Harvest and unlisted companies Lion of Africa Insurance and House of Monatic. It also has stakes in private hospital group Life Healthcare, Oceana, Aon Re Africa and tertiary education group Stadio. Last year it pulled out of a consortium that was buying dairy group Clover due to pressure from shareholders and communities against the involvement of consortium leader, Israel's Central Bottling Company.

Obsidian is the remaining portion of the medical division of The Scientific Group, in which Brimstone was an investor for close to 20 years.

Brimstone's N and ordinary T shares didn't trade yesterday, closing unchanged at R7.25 and R7.02 respectively.

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