Zeder, through its wholly-owned subsidiary Zeder Financial Services Limited (ZFS), holds 92.98% of the issued shares of Capespan, with minority shareholders holding the remainder of the shares. File
The market yesterday welcomed the move by Zeder, which has investments across the agribusiness spectrum, to agree to dispose of its Capespan Group majority stake through its wholly-owned subsidiary Zeder Financial Services Limited (ZFS).
The group said the agreement excluded its pome fruit primary production operations and the Novo fruit packhouse, Pome Farming Unit.
The share price jumped yesterday to a high of nearly 12% at R1.80, later moderating to R1.70.
"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," it said.
Zeder, through its wholly-owned subsidiary Zeder Financial Services Limited (ZFS), holds 92.98% of the issued shares of Capespan, with minority shareholders holding the remainder of the shares.
Capespan comprises two divisions, the sales and marketing division, with a global footprint in sourcing and marketing fruit, and the primary agriculture farming division, which is mainly South Africa and Namibia-based and consists of several primary production units producing grapes, citrus, and pome fruit as well as the Novo fruit packhouse operation situated in Paarl.
The group said 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 is a sustainability focused asset-backed note programme and is administered by a diversified financial services group 27four Investment Managers.
Zeder said the disposal was consistent with Zeder’s strategic review and pursuant to the evaluation of approaches received by Zeder on various portfolio assets.
"The disposal is part of an initiative to maximise wealth for shareholders," it said. The net proceeds from the deal, subject to regulatory approval, will be paid out to shareholders,“ it said, adding that said the disposal was subject to the fulfilment of conditions and the approval of the disposal by the relevant competition authorities.
Recently, Zeder disposed of its interest in Agrivision Africa for R160 million, the group also unbundled its 42.2% interest in Kaap Agri and disposed of its interest in The Logistics Group (TLG) for R1.57 billion.
At the time, Zeder CEO Johann le Roux said: “The corporate actions resulted in an amount of R2.06 per share returned to Zeder shareholders and therefore directly resulting in a smaller Zeder business.”
Anthony Clark, an independent analyst at Small Talk Daily, said in a note that Zeder Investments had sliced Capespan up and exited part of the business, but decided to keep the apple and pear business.
“The value for the slice sold of R511.39m does not seem to me like a decent price given the total Capespan SOTP value at R1.046m was already at a hefty discount to market value.
“However, with the deal extracting the potential for a 33.2cps (cents per share) further special dividend and 19.5cps yet to come from the residual The Logistics Group (TLG) sale, that 52.7cps windfall dividend should keep the punters happy even though the residual; listed Zeder arm remnant is now just ZAAD (which is stuffed with debt) and an apple & pear business. Hardly an inspirational listing,” Clark said.
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