---
title: "From weed to wires, new fish and leaner paper empires"
description: "Markets are reshuffling the deck: Labat ditches weed for wires, Oceana hooks a new empowerment investor, and Sappi splices off shrinking paper into a mega joint venture. Capital, strategy and survival instincts are all on display for 2026 and beyond."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "SENS SNIPPETS"
author: "Neesa Moodley"
author_url: "https://www.dailymaverick.co.za/author/neesa-moodley/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-12-05-from-weed-to-wires-new-fish-and-leaner-paper-empires/"
published: "2025-12-05T09:54:22"
lang: "en-ZA"
word_count: 389
---

# From weed to wires, new fish and leaner paper empires

> Markets are reshuffling the deck: Labat ditches weed for wires, Oceana hooks a new empowerment investor, and Sappi splices off shrinking paper into a mega joint venture. Capital, strategy and survival instincts are all on display for 2026 and beyond.

By Neesa Moodley · Published 5 December 2025, 11:54 SAST

## Key points
- Markets are reshuffling the deck: Labat ditches weed for wires, Oceana hooks a new empowerment investor, and Sappi splices off shrinking paper into a mega joint venture. Capital, strategy and survival instincts are all on display for 2026 and beyond.
- Labat pivots: Dumps cannabis for ICT, selling CannAfrica for R8-million to focus on tech advancements.
- Oceana’s investment shake-up: Brimstone reduces its stake to 16% as it sells shares to Marine Edge Capital, bolstering black ownership.
- Sappi and UPM join forces: Plan to merge European graphic paper businesses, aiming for efficiency and cost savings amid declining demand.
- Strategic realignments: Companies prioritise survival and future growth as they adapt to market changes for 2026 and beyond.

## Content

### Labat

**Bye-bye weed, hello wires** – Labat is selling 100% of CannAfrica and is officially ditching cannabis and healthcare to focus fully on ICT, micro-electronics, digital logistics and AI tech.

**Small cap, spicy deal** – CannAfrica is being sold for R8-million, which is about 15.5% of Labat’s market value, and the cash will help keep the lights on and fund its new tech-focused turnaround plan.

**No shareholder soap opera** – The sale counts as a Category 2 deal, so no shareholder vote is needed. Once all approvals are ticked, CannAfrica’s shares move to the buyer, and Labat walks away from the cannabis game.

### Oceana

**Big fish swaps hands** – Brimstone is selling 11.95 million Oceana shares to Marine Edge Capital, a new investor that’s 51% black owned and already active in the fishing game.

**One giant, one newcomer** – After the deal, Brimstone’s stake drops from 25.2% to 16%, while Marine Edge will own 9.2% of Oceana – so Brimstone is still a big player, just a slightly smaller one.

**Paperwork with the ref** – Because these are big chunks of shares, Oceana must notify the Takeover Regulation Panel and then tell shareholders once the official forms from Brimstone and Marine Edge arrive.

### Sappi

**Two paper giants, one big club** – Sappi and Finland’s UPM want to bundle most of their European graphic paper businesses into a brand-new company they’ll each own 50/50. It’s still just a signed “intent” letter for now, with the real deal only expected to be signed and closed during 2026 if all regulators and shareholders approve.

**Less dying paper, more future focus** – Graphic paper (like magazine and ad paper) is in long-term decline, so the joint venture aims to shut extra capacity, boost efficiency and save at least €100-million a year. For Sappi, it’s a big step in its “Thrive” plan: shrinking old-school graphic paper to under 20% of its sales so it can focus more on higher-growth products.

**Cash now, debt diet later** – Sappi’s contribution is valued at €320-million; it will put in several European mills plus liabilities and, in return, get 50% of the new company *and* €139-million in cash. That cash is earmarked to pay down debt. Because the deal is large (over 30% of Sappi’s market value), shareholders will get a circular and must vote it through. **DM**