SOUTH AFRICA – Zeder Investments, a South African agribusiness group, is seeking to offload its subsidiary Zeder Africa which owns about 55.62% of Agrivision Africa to Zambian firm ForAfric Forestry Proprietary Limited for a considerable R160m (US$9.46m).
After strategic review, Zeder agreed that it was appropriate to divest Zeder Africa, as its core business – Agrivision Africa, has been a difficult investment for the firm due to the volatility of the agricultural landscape in Zambia and certain operational and macro challenges specific to the country over the past few years.
Before initiating this sale transaction, the investment firm listed on the Johannesburg Stock Exchange, claims to have made a commitment to improve the operational efficiency and reduce the debt of Agrivision Africa.
Agrivision Africa is a Mauritia based investment company focusing on the grain value chain. It currently has two main investments i.e., Agrivision Zambia and Mpongwe Milling.
Agrivision Zambia is a company focused on the acquisition, development and management of large-scale commercial grain operations, while Mpogwe Miling is a staple food manufacturer located on the Zambian Copperbelt.
The divestment comes after Zeder Investments offloaded its 98.22% stake in The Logistics Group (TLG), the old terminals arm of the fruit marketing giant Capespan – for R1.57 billion (US$92.8m) to Newlands-based African Infrastructure Investment Managers (AIIM). During the same time Zeder Investments unbundled its 42.2% stake in Kaap Agri.
Prior to that, the investment company offloaded all its 61.6 million shares, representing 32.1% stake held in Quantum Foods Holdings Limited, a JSE-listed feed and poultry products firm to Country Bird Holdings Proprietary Limited (CBH).
This was after it sold its entire 28.6% interest in Pioneer Foods to PepsiCo for a total consideration of R6.41 billion (US$375.85m).
The remaining Zeder’s portfolio represents strategic equity interests in leading organisations that span the agribusiness value chain.
This includes Zaad Holdings focused on importing and distributing a broad range of agri seeds and agricultural chemicals in Africa, Europe and other international emerging markets.
Through Agricol, Klein Karoo Seed Marketing and Gebroeders Bakkerit, it has a proud history spanning more than 50 years and currently exports to more than 100 countries.
In addition to that, Zeder Investments owns Capespan, an unlisted group with a history spanning more than 70 years.
Its core business activities are focused on the production, procurement, distribution and marketing of fruit worldwide.
It has an annual turn-over of over R4 billion (US$236m) and has operations in 11 countries, providing services and produce to more than 85 countries across five continents.
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