Two South African fruit exporters that dominated the exports of South African citrus and deciduous fruit during the 1980’s and 1990’s, Unifruco Ltd and Outspan International, will soon cease to exist.
This follows a decision by Capespan shareholders to simplify shareholding in the company and to implement a new structure.
Heralding the end of an era and the start of a new chapter, Capespan shareholders voted overwhelmingly in favour of Capespan’s shareholding simplification process and proposed new structure last week.
Capespan Group’s managing director Neil Oosthuizen said that in future all shareholders will have direct shareholding in the new holding company, Capespan Group Limited.
Since the merger between Unifruco Ltd and Outspan International at the beginning of 1999 following the deregulation of the South African deciduous and citrus industries to establish Capespan, the two companies have held significant blocks of shares in Capespan and dictated the direction of the company.
“Unifruco Ltd and Outspan International will now voluntarily close down after Capespan has taken over all their remaining assets and liabilities,” said Mr Oosthuizen.
Capespan initiated a shareholding simplification process to increase share tradability, unlock shareholder value, further commercialise the Group and improve corporate governance. “There also will be substantial savings in administrative and other costs involved in maintaining a complex multi-tiered structure,” explained Mr Oosthuizen.
To enable shareholders to unlock value, Mr Oosthuizen said Capespan made an offer to repurchase shares up to a certain limit.
With the two biggest shareholders in Capespan now disappearing, the biggest single shareholder in Capespan is the international fresh produce group, Total Produce plc, with a share of 11.5 per cent.
