Johannesburg - Agricultural groups Afgri (AFR) and Senwes
have agreed to merge their respective agricultural retail businesses‚ as well
as the Partrite business of Afgri‚ in a deal the companies said aimed to
optimise efficiencies by means of building economies of scale and diversifying
business operations.
Under the deal‚ which is still subject to conditions
precedent‚ both companies’ retail businesses will be managed under an entity
called Business Venture Investments (Newco).
Afgri said the 50% shareholding in Newco was indicatively
valued at approximately R440m‚ which was based on fair value assumptions at the
time of issuing this announcement.