Capespan is ushering in a new era as Unifruco and Outspan are wound up in a bid for structural simplification.

Shareholders at the South African export group voted overwhelmingly in favour of Capespan’s shareholding simplification process and proposed new structure last week.

“Simplifying the shareholding and implementing the future structure will lead to new opportunities for the organisation” said Capespan Group managing director Neil Oosthuizen. “The approvals mean that all shareholders will in future have direct shareholding in the new holding company, Capespan Group Limited. Immediately after implementation the single largest shareholder with 11.5 per cent is Total Produce plc. Meanwhile, Unifruco and Outspan will be wound up voluntarily as Capespan has taken over all their remaining assets and liabilities.”

Capespan Group Holdings was established in 1999 by its two parent companies, Unifruco and Outspan. Shareholders of these two companies were mainly growers of deciduous and citrus fruit respectively. Unifruco was formed in 1989 as a follow-on of the co-operative styled Deciduous Fruit Board (DFB), in existence since 1939. Outspan in turn was established in 1994 as the organisation replacing the South African Co-operative Citrus Exchange (SACCE), which had controlled citrus exports since 1926.

However, since 1999 and the establishment of Capespan Group Holdings, Outspan and Unifruco had become non-operating companies. Each of them held approximately 39 per cent of the Capespan Group shares on behalf of growers. Just over a year ago Capespan initiated a shareholding simplification process to increase share tradability, unlock shareholder value, further commercialise the group and improve corporate governance. The group also expects significant savings in administrative and other costs from the simplification.

Furthermore, to enable shareholders to unlock value, the company, as a second part to the total process, made an offer to repurchase shares up to a certain limit.

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