Long-serving South African fresh produce company executive Riaan van Wyk has returned to Colors Fruit as chief executive following a decision of the major shareholders to divide the company’s assets.
This has resulted in Colors Fruit being repositioned to concentrate on the development and marketing of unique cultivars.
Eurofruit understands that, following the earlier decision by Van Wyk, to resign, a period of intense negotiations took place in which various options were considered. In the end the three leading shareholders – Van Wyk, FarmsSecure and the Carstens Brothers from Paarl – decided that it was in everyone's best interest to divide the assets of the Colors Group.
While all details have yet to be confirmed, it is understood that Farmsecure would retain the NovoPackhouse in Paarl, as well as one of the Colors Fruit farms. Van Wyk and another shareholder, Lizel Kriegler, will continue to develop Colors Fruit as an exporter with the focus on developing and marketing unique new fruit varieties. The Carstens Brothers will receive compensation as their part of the deal.
Van Wyk said this afternoon (4 December) that Colors Fruit will immediately focus on its new direction and will make further announcements after talking to international partners.
The Carstens Brothers were founding shareholders of Colors Fruit and held 24 per cent of the shares, while Farmsecure more recently acquired 33 per cent of the shareholding. Apart from Van Wyk, with 24 per cent shareholding, there are only a few other minor shareholders.
