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Cape Town - Zeder Investments [JSE:ZED], the listed agri-investment company with specific focus on the food and beverage sectors, intends to make an offer, subject to certain pre-conditions, to Agri Voedsel’s minority shareholders, it announced on Friday.
Agri Voedsel holds an interest of about 30% in Pioneer Foods [JSE:PFG].
The offer will be in the form of listed Zeder shares in the ratio 16.2 Zeder shares for every 1 Agri Voedsel share.
The offer-ratio was calculated on a see through basis with the underlying value of Agri Voedsel’s shares at about R99 per share and the Zeder’s shares at about R6.11 per share.
Movements or arbitrage in the share price of both companies in the interim is therefore negated.
Making the announcement Zeder CEO, Norman Celliers, said Zeder already owns about 50% of Agri Voedsel and has obtained Competition Commission approval to acquire the balance of the shares.
Zeder has received undertakings from the majority of its shareholders to support the transaction and the issue of about 30% new Zeder shares.
Zeder director Piet Mouton said the transaction was mainly brought about by the fact that over-the-counter trading of Agri Voedsel shares will end shortly in terms of FSB directives.
Agri Voedsel does not qualify for a listing on the JSE as its sole and main asset is already listed and any unbundling of shares is not feasible.
“The Zeder offer is therefore a fair and attractive alternative for Agri Voedsel shareholders,” said Mouton.
Celliers said that Zeder is of the opinion that the proposed transaction is a win-win situation for both companies.
It offers Agri Voedsel shareholders listed Zeder shares for unlisted shares, more liquidity for share trading and they will retain exposure to Pioneer Foods as it will remain a large part of the Zeder portfolio.
Furthermore, Agri Voedsel shareholders will move from a single-stock exposure to a more diversified portfolio of agri food and beverage investments.
For Zeder shareholders there is further exposure to an asset they know well, improved liquidity in that more shares will be placed with a wider shareholder base and improved gearing capability.
“A further announcement will be made in due course,” Celliers said.
Agri Voedsel holds an interest of about 30% in Pioneer Foods [JSE:PFG].
The offer will be in the form of listed Zeder shares in the ratio 16.2 Zeder shares for every 1 Agri Voedsel share.
The offer-ratio was calculated on a see through basis with the underlying value of Agri Voedsel’s shares at about R99 per share and the Zeder’s shares at about R6.11 per share.
Movements or arbitrage in the share price of both companies in the interim is therefore negated.
Making the announcement Zeder CEO, Norman Celliers, said Zeder already owns about 50% of Agri Voedsel and has obtained Competition Commission approval to acquire the balance of the shares.
Zeder has received undertakings from the majority of its shareholders to support the transaction and the issue of about 30% new Zeder shares.
Zeder director Piet Mouton said the transaction was mainly brought about by the fact that over-the-counter trading of Agri Voedsel shares will end shortly in terms of FSB directives.
Agri Voedsel does not qualify for a listing on the JSE as its sole and main asset is already listed and any unbundling of shares is not feasible.
“The Zeder offer is therefore a fair and attractive alternative for Agri Voedsel shareholders,” said Mouton.
Celliers said that Zeder is of the opinion that the proposed transaction is a win-win situation for both companies.
It offers Agri Voedsel shareholders listed Zeder shares for unlisted shares, more liquidity for share trading and they will retain exposure to Pioneer Foods as it will remain a large part of the Zeder portfolio.
Furthermore, Agri Voedsel shareholders will move from a single-stock exposure to a more diversified portfolio of agri food and beverage investments.
For Zeder shareholders there is further exposure to an asset they know well, improved liquidity in that more shares will be placed with a wider shareholder base and improved gearing capability.
“A further announcement will be made in due course,” Celliers said.
