South Africa-based fresh produce company Capespan has acquired the remaining 50 per cent shareholding in Capespan International Holdings, the UK and European marketing company, from Irish group Total Produce, in return for a greater share in its own business.
Total Produce, the Dublin-based global fresh produce company which is listed on the Irish stock exchange, has shared joint ownership with Capespan in Capespan International Holdings Limited for more than a decade.
According to a Capespan media statement, the purchase consideration will be settled partly in cash (€8.5m) as well as through the issue of 20m new shares in Capespan.
Carl McCann, chairman of Total Produce, said he was happy with the deal, which is understood to be worth €13m in total.
'We are pleased to have further increased our shareholding in Capespan, the premier South African produce company with a global reach,' he commented.
Capespan said that until full details were published, the company remained under a cautionary announcement and was therefore unable to provide much in the way of further information.
The transaction itself is subject to various approvals, one of them being from the South African Reserve Bank.
'As the approval of shareholders will be required for the issuance of the shares, the details and effect of the transaction will be fully disclosed in a circular to shareholders early in the new year,' a spokesperson for Capespan said. 'The transaction will be effective after the regulatory approvals have been received.'
Strategic alliance
Group managing director Johan Dique did say the acquisition would allow Capespan to align its service offering directly with customer demands and strengthen operations for future growth.
'The transaction will also increase the shareholding of Total Produce in Capespan, which will enhance the strategic alliance and partnership between the two parties in the fruit industry globally,' Dique added.
Capespan recently announced that Total Produce had increased its shareholding in Capespan to 20.03 per cent.
South African investment company BB Investment, a wholly owned subsidiary of The Bidvest Group, recently announced that its holding in Capespan’s ordinary share capital had reached 7.9 per cent, excluding treasury shares.
The leading shareholder in Capespan remains Zeder Investments Ltd, owned by the diversified financial services and investment group PSG.
Zeder Investments recently halted, perhaps only temporarily, its quest for full ownership when its shareholding reached 40 per cent.
Mr Dique pointed out that in addition to its logistical operations, Capespan was a global fruit supplier to retailers, wholesalers and foodservice operators in 34 countries of the Northern Hemisphere.
This was supported by a procurement footprint in over 40 countries globally, he added.
The group's operations in the UK and throughout Europe are held by Capespan International Holdings Limited, which is based in the UK.
