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Afgri receives R2.4bn buy-out offer

Afgri receives R2.4bn buy-out offer

Photo by Duane Daws

30th September 2013

By: Creamer Media Reporter

  

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South African agricultural and diversified foods group Afgri has entered into an agreement with AgriGroupe Holdings in terms of which the latter plans to acquire all shares in Afgri at R7 a share, or R2.4-billion.

The offer is fully financed and represents a premium of 49% to the volume weighted average share price of R4.70 for the 30 trading days prior to Afgri’s cautionary announcement on September 6.

AgriGroupe is a private investment company incorporated in South Africa. It plans to combine Afgri’s commercially sound and sustainable operating model with a long-term vision to provide economically viable farming opportunities for both smallholder and large-scale commercial farmers in Africa and food for millions of people in Africa.

The deal is subject to shareholder approval.

Afgri CEO Chris Venter said the company’s board had assessed the offer carefully.

“The board and Afgri management are assured that AgriGroupe will strengthen our South African operations and support an expansion drive on the continent. Its substantial investment in Afgri will give us additional resources to support our growth plans in Africa.

“Afgri recognises the need for a stronger capital base in order to compete effectively in providing sustainable food security solutions in Africa outside of South Africa, while also defending its leadership position in a mature South African agriculture market,” he added.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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