Capespan may soon be up for sale - report

Zeder share price surges as it considers Capespan sale - report

Zeder share price surges as it considers Capespan sale - report

The share price of South African-based agricultural investment company Zeder has surged this week on the JSE on Tuesday after the Capespan owner said it had received approaches from third parties regarding some of its portfolio of investments.

The company's share price has risen by 15 percent since Friday, reaching its highest level since April last year when the price plummed at the onset of the Covid-19 pandemic.

Zeder said it is considering the approaches following its overall strategic review after the disposal of its Pioneer Foods and Quantum Foods shareholdings last year, and the group was engaging with certain of these parties.

Chief executive Johann le Roux was quoted as saying by local news organization IOL that the board was evaluating these approaches. “We will communicate in more detail to the market on the value-enhancing progress, as may be required from time to time," he said.

“The strategy does not have a specific timeline and will be executed in an appropriate and responsible manner in an attempt to maximize shareholder value. “We nevertheless remain focused on growing our investment portfolio and will evaluate opportunities as and when deemed appropriate,” Le Roux added.

The group has also invested in Capespan, Kaap Agri, Agrivision Africa, Zaad and The Logistics Group following the disposal of its stakes in Quantum Foods and Pioneer Foods.

According to News24, analyst Anthony Clark of Small Talk Daily Research believes Zeder could be considering the divestment of its logistics company and Capespan, one of the country's leading fruit exporters.

Zeder said the majority of its investment portfolio companies achieved acceptable earnings growth and has proven to be more resilient than expected during the Covid-19 pandemic, while positive climatic changes of late should contribute to improved conditions in the short to medium term.

“Our strategic focus during the coronavirus pandemic was deliberately cautious and conservative. Accordingly, we dedicated most of our efforts to existing investments, strengthening their operating models and balance sheets where possible, while driving additional and diversified growth from within the existing investments,” Le Roux said.

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