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Johannesburg - Chris Schutte, CEO of poultry producer Astral Foods [JSE:ARL], said on Monday the Competition Commission has given unconditional approval for the group's acquisition of Western Cape-based Vredebest Farms for R23m.
The Vredebest property is situated near Paarl in the Western Cape and comprises three separate farms (Anysrug, Hillcroft and Vrymansfontein) with poultry houses, dwellings and a broiler hatchery on one of the farms.
The hatchery on Anysrug has the capacity to produce 300 000 hatching eggs per week.
Accordingly, the transaction includes the takeover of all breeding stock in the system at the time of takeover, all vehicles and equipment, and all the employees of Vredebest Farms by County Fair, a wholly-owned subsidiary of Astral.
Theo Delport, managing director of Astral's poultry division, said these farms are ideally situated to be incorporated in the County Fair integrated operations in the Western Cape. "Due to the ideal proximity of the operation there are many viable options to be explored for either breeder or broiler facilities," said Delport.
Daan Ferreira, Astral's chief financial officer, said the acquisition is seen as a strategic investment due to its proximity to County Fair and will accommodate future expansion. "The effect on current profitability and cash flow will not be material," said Ferreira.
- Fin24.com
The Vredebest property is situated near Paarl in the Western Cape and comprises three separate farms (Anysrug, Hillcroft and Vrymansfontein) with poultry houses, dwellings and a broiler hatchery on one of the farms.
The hatchery on Anysrug has the capacity to produce 300 000 hatching eggs per week.
Accordingly, the transaction includes the takeover of all breeding stock in the system at the time of takeover, all vehicles and equipment, and all the employees of Vredebest Farms by County Fair, a wholly-owned subsidiary of Astral.
Theo Delport, managing director of Astral's poultry division, said these farms are ideally situated to be incorporated in the County Fair integrated operations in the Western Cape. "Due to the ideal proximity of the operation there are many viable options to be explored for either breeder or broiler facilities," said Delport.
Daan Ferreira, Astral's chief financial officer, said the acquisition is seen as a strategic investment due to its proximity to County Fair and will accommodate future expansion. "The effect on current profitability and cash flow will not be material," said Ferreira.
- Fin24.com
