Barely 24 hours after speculation started that the sale of its 25.35 per cent stake in Capespan by Total Produce to South African investment Group Zeder Financial Services Ltd would lead to a listing of the company, Zeder executives have rejected the claims.
The European fresh produce marketer announced yesterday (18 April) that it was selling its stake in Capespan after some years, despite having gradually increased its stakeholding in the South African group.
This announcement marked the end of a decade-long partnership between the Irish and South African companies and immediately started speculation that Capespan would be heading for a listing on the stock exchange.
Capespan has confirmed the deal would be concluded on 23 April and declined to comment further until after this date. The deal is said to be worth R258m (€22m) and increases Zeder’s majority shareholding in South Africa's biggest fruit exporter to just over 71 per cent.
However, Zeder CEO Norman Cilliers has poured cold water on the listing talk: “If you have noted our strategic investments over the past few months you will have noted that they favour non-listed companies. We have no plans to list Capespan on the stock exchange.”
Cilliers added that Zeder was happy with the level of its current investment in Capespan.
According to yesterday’s announcement by the Irish firm, the agreement followed a recent approach by Zeder and a strategic review of the long-term benefits of holding what was a minority stake.
Zeder, which has its headquarters in Stellenbosch, is an investment holding company that mainly invests in food, beverage and agricultural companies where it feels it can add value. The acquisition of a larger stake in Capespan appears to fit well into that strategy.
Total Produce, meanwhile, had been Capespan's second-largest shareholder since January 2012, when Capespan Group bought out the Dublin-based company's 50 per cent interest in Capespan's European business, in exchange for €8.5m in cash and the issue of an additional 20m, or 6.3 per cent, of Capespan Group's total shares.
Total Produce accounted for its shareholding in Capespan as an associate and, in 2012, it generated turnover of €112m and adjusted profit after tax of €1.9m for the company.
Commenting on the transaction, Total Produce chief executive Rory Byrne said: 'We have enjoyed an excellent relationship with the Capespan team since 1999, and would like to thank them for their valued performance and contributions over the years. We look forward to continued trading links with Capespan, and would like to wish them and Zeder every success in the future.'
