4AX-listed agricultural company NWK will sell its animal feed business Opti Agri to Country Bird Holdings for R290-million.
This is in line with NWK’s revised business strategy with an emphasis on greater customer focus around the core business.
The proposed transaction is subject to various suspensive conditions, final negotiation and the conclusion by no later than June 4 of the necessary agreements, as well as being subject to all relevant and applicable competition authority and other regulatory approvals, says NWK chairperson Heinrich Krüger.
“This proposed transaction is strongly aligned with the NWK business strategy. NWK maintains a strategic goal-oriented approach and remains actively involved in innovative initiatives through high efficiency, energy and momentum,” he adds.
NWK CEO Theo Rabe says the Opti Agri business is profitable and contributed to the success of NWK. He adds that the proceeds of such a proposed transaction can offer good value to NWK shareholders and stakeholders.
“This transaction can contribute to the creation of a deeper, focused environment where farmers and other clients benefit from their relationship with NWK as their dynamic business partner,” he says.
“The possible acquisition of Opti Agri as a going concern is being considered because we see the business value and, therefore, made the proactive offer to NWK,” adds Country Bird CEO Marthinus Stander.