PIC, Pelo set to buy majority stake in Karan Beef

The Public Investment Corporation and Pelo Agricultural Ventures are set to acquire a majority shareholding in Karan Beef for up to R5.2bn, PIC said in a statement on Tuesday.

The deal is subject to approval by the Competition Commission.

Karan Beef operates the largest cattle feedlot and abattoir on the continent.

The company was founded in 1974 by the Karan family and is based in Heidelberg, Balfour and City Deep.

The feedlot accommodates 150 000 head of cattle at any given time, with the Balfour-based abattoir having the capacity to process 2 100 every day.

South Africa is Karan Beef's biggest market, but it also has a substantial export market, PIC said.

"This is a historic deal concluded in terms of our clients' developmental investment mandate, which will support much-needed transformation in the agricultural sector," said PIC CEO Dan Matjila.

Pelo Agricultural Ventures CEO Aobakwe Kukama said the aim was to work with the existing management team to grow the company.

The fact that the company would remain South African was positive, added Ivor Karan.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER