SOUTH AFRICA – Astral Foods Limited, a key player in South Africa’s poultry industry, has announced the acquisition of a 5.16% stake by Mianzo Asset Management (Pty) Limited.
This development, disclosed on 10 July 2024 and in compliance with regulatory requirements, marks a notable change in Astral Foods’ ownership structure.
In response to this acquisition, Astral Foods has promptly fulfilled all legal obligations by notifying the Johannesburg Stock Exchange and filing necessary disclosures with the Takeover Regulation Panel.
The board of Astral Foods has affirmed the accuracy of this announcement, emphasizing compliance with applicable government laws.
The sponsors of this transaction were Nedbank Corporate and Investment Banking.
This news from Astral Foods and Mianzo Asset Management highlights recent financial challenges faced by Astral.
Astral Foods reported its first-ever annual loss in November last year, amounting to R512.2 million (US$27.8 million), a stark contrast to the R1.05 billion (US$57M) profit recorded in the previous year.
The company cited severe impacts from power outages and an outbreak of bird flu in South Africa, which severely disrupted operations and eroded profitability.
Throughout the financial year, Astral Foods issued several profit warnings, anticipating the adverse effects of load-shedding and the H7N6 strain of bird flu on its financial performance.
These challenges also affected other food businesses in South Africa, including RCL Foods and Libstar, exacerbating sector-wide pressures.
Chris Schutte, Chief Executive Officer of Astral Foods, acknowledged the unprecedented financial setback, attributing it to external factors beyond the company’s control.
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