Agribusiness-focused investment holding group Zeder announced on Monday that it will be selling off its majority stake in fruit distributor Capespan Group, triggering a surge in its share price in early trade.
The company, valued at about R2.7bn on the JSE, saw its price jump 9.32% to R1.76 at 10.48am when Zeder made the announcement about the 92.98% interest it has in fruit distributor Capespan Group via its subsidiary, Zeder Financial Services (ZFS).
ZFS and the Capespan minority shareholders have agreed to sell to special-purpose acquisition vehicle 3 Sisters, owned and funded by Agrarius Agri Value Chain (Agrarius OpCo), for a total R550m of which Zeder will receive R511.39m.
Agrarius OpCo operates a R10bn sustainability focused asset-backed note programme and is administered by diversified financial services group 27four Investment Managers.
Capespan is made up of two divisions. The one is sales and marketing with a global focus and the other is the agriculture farming division, which is largely based in SA and Namibia.
The effective date of the disposal of Zeder’s stake, valued at about R1bn according to its latest annual results, is expected to be in January, but will not include Capespan’s pome fruit primary production operations and the Novo fruit packhouse, collectively known as the Pome Farming Unit.
“Following the implementation of the disposal, Zeder will continue to own the Pome Farming Unit and as part of the disposal will conclude a strategic relationship with Capespan in respect of the marketing and distribution of the Pome Farming Unit’s crops,” Zeder said.
The net proceeds from the deal, subject to regulatory approval, will be paid out to shareholders.
Zeder was listed on the JSE in 2006 as a vehicle to consolidate PSG’s various agribusiness industry holdings.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.