International fresh produce group Capespan has this week issued a cautionary note to shareholders sparking speculation on new developments in the ongoing battle for control of the South African multi-national.

In a short statement, the company advised shareholders that it has entered into negotiations that, if successfully concluded, may have a material effect on the price of the company’s securities.

“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made,” the statement read.

Earlier, it was reported that both Total Produce and BB Investment, which is a wholly owned subsidiary of The Bidvest Group Limited, have acquired additional ordinary shares in the company.

Leading South African investor Zeder Investments Ltd now has a shareholding of 40 per cent.

Meanwhile, Capespan International Ltd this week reported an improved performance for the year to 2 January 2011 in results filed at Companies House.

The company posted a £1.19m loss after tax for the year, but that represented a considerable improvement on the £4.5m loss the previous year.

In 2010, the focus of the business was to broaden the customer profile and look at cost containment and restructuring, the directors’ report said.

It explained: “The focus for 2011 is to continue to consolidate and broaden both existing and new customer and supplier bases and to ensure that the change in business model for operational activities is successfully implemented and bedded down.”

The company has successfully sourced third parties to pack and store product and found alternative office space, it added.

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