Afgri rises, to spin off businesses

Shares of Afgri rise over 2 percent after it says it will merge some of its retail and spare parts businesses with that of mechanisation company, Senwes, into a new company.

Afgri says it will sell its retail outlets trading under Town and Country and Farm City, and its shareholding in Partrite, while Senwes will offload its retail business; Village Grocer, Quick Serve and Senwes Village into the new venture.

Afgri, a $258 million retail and agriculture conglomerate, says the deal will diversify both companies' operations and build economies of scale.

Its shares are 2.3 percent stronger at 5.73 rand, compared with a 0.5 percent decline by Johannesburg's All-Share index. - Reuters