Durban - Zeder Investments, the JSE-listed agri-investment company with a specific focus on the food and beverage sectors, said it planned to list the Kaap Agri unit, in which it has shares, separately this year.
This was revealed by Zeder chief executive Norman Celliers during the annual results presentation for the year to February, on Monday.
“Kaap Agri will definitely list in 2017. It is still too early to tell when exactly but sometime this year,” said Celliers.
Zeder Investments has a 39.6 percent stake in Kaap Agri.
The company is predominantly a retail, trade and services group supplying a wide variety of products to the agricultural sector and the general public.
Kaap Agri has an annual turnover of more than R5.3 billion.
Celliers said Kaap Agri had performed well over the years as a separate company with its own board. “Nothing will change on how the company is run after the listing. It will continue to operate as it is because it has a very good management team,” Celliers said.
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He said, despite a challenging macro environment, Kaap Agri delivered strong results for its financial year to September, with headline earnings per share increasing 15.1 percent.
Celliers said significant progress had been made in structuring and diversifying the company to ensure an attractive listing. “Its strategy of product and geographic diversification bodes well for the future and its focus on adding non-agri income streams and improving efficiencies has gained traction,” said Celliers.
Zeder has investments in other companies such as Pioneer Foods, where it has a 27.2 percent stake; Quantum Foods 26.4 percent; Capespan Group 98.1 percent; Agrivision Africa 55.9 percent and Zaad Holdings 92.9 percent.
These investments have delivered good investments for an operating environment where the agricultural sector experienced its worst drought in more than 30 years.
The group said the sum-of-the-parts (SOTP) value per share, a key benchmark, increased by 23.1 percent to R8.53 a share on a like-for-like basis as at February 28, 2017 with the total underlying investment portfolio amounting to R15.2billion, from R12.4bn as at February 29, 2016.
The SOTP values are calculated by using the quoted market prices for all JSE-listed investments and market-related valuations for unlisted investments.
“Zeder remains actively involved with its underlying portfolio of companies and will seek to add select meaningful new investments when appropriate,” the group said.
Celliers bemoaned the downgrading of South Africa to junk status by ratings agencies, charging that it would have negative implications for consumers.
He said the downgrade came at a time when the country was trying to bounce back from the devastating drought.
The group declared a final dividend of 11c a share, up by 22.2 percent compared with 9c a share declared last year.
Zeder shares dropped 1.22 percent to R7.30.