Publications
Partners
Johannesburg – Agricultural services group AFGRI (AFR) announced on Tuesday that it has implemented the Izitsalo Employeee Investments acquisition following its revised broad based black economic empowerment structure.
The deal will see Izitsalo acquire all of the 80.1% undivided interests of the remaining existing beneficiaries of the Agri Sizwe Trust, for a net purchase consideration of R206.5m.
When the estimated debt in Agri Sizwe Trust of approximately R584.7m as at May 31, 2010 - being the effective date of the Izitsalo acquisition - is taken into account the purchase consideration implies a total value of the 26.77% undivided interest in AFGRI Operations Ltd of R842.5m.
The purchase price payable by Izitsalo will be funded by way of a loan from GRO Capital Financial Services.
Izitsalo is made up of 40% AFGRI Employee Empowerment Trust and 60% AFGRI Charitable Trust. AFGRI's main operations are AFGRI Financial Services, AFGRI Agri-Services and AFGRI Foods.
"The Izitsalo empowerment platform will ensure that AFGRI retains and enhances its empowerment status, continues to meet empowerment objectives, enhances employees' ownership and provide employees with continued empowerment benefits," the group said.
AFGRI also announced the resignation of Moses Moloele, Moji Mogari and Kgomotso Thoka as company directors with effect from September 3, 2010.
The deal will see Izitsalo acquire all of the 80.1% undivided interests of the remaining existing beneficiaries of the Agri Sizwe Trust, for a net purchase consideration of R206.5m.
When the estimated debt in Agri Sizwe Trust of approximately R584.7m as at May 31, 2010 - being the effective date of the Izitsalo acquisition - is taken into account the purchase consideration implies a total value of the 26.77% undivided interest in AFGRI Operations Ltd of R842.5m.
The purchase price payable by Izitsalo will be funded by way of a loan from GRO Capital Financial Services.
Izitsalo is made up of 40% AFGRI Employee Empowerment Trust and 60% AFGRI Charitable Trust. AFGRI's main operations are AFGRI Financial Services, AFGRI Agri-Services and AFGRI Foods.
"The Izitsalo empowerment platform will ensure that AFGRI retains and enhances its empowerment status, continues to meet empowerment objectives, enhances employees' ownership and provide employees with continued empowerment benefits," the group said.
AFGRI also announced the resignation of Moses Moloele, Moji Mogari and Kgomotso Thoka as company directors with effect from September 3, 2010.
