South Africa-based fund Zeder Investments has made a full takeover bid for fruit distributor Capespan.
Zeder already owns a 27.7% stake in Capespan, which delivers fruit and fruit juice to 44 countries worldwide.
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The fund is offering Capespan shareholders – including Ireland-based produce firm Total Producer – ZAR2.25 a share for the rest of the business. The offer values Capespan at ZAR485.9m (US$71m).
Zeder said yesterday (15 June) that it was “best suited” to help Capespan in addressing the challenges facing the business.
“The market share of Capespan’s fruit distribution business has reduced over the years, given the fact that the environment within which they operate has changed dramatically. This represents both a challenge and an opportunity, and Capespan will have to adapt in order to overcome same and to achieve growth going forward,” Zeder said. “The aforesaid is not without risk, and finance and patience will be required. A shareholder of reference, like Zeder, will be best suited to assist Capespan in addressing these challenges.”
Zeder said it would post the details of its offer to Capespan shareholders by 12 July. The fund described the offer as “fair” and said it was set at a 29.5% premium to Capespan’s volume-weighted average traded share price over the last 30 days.
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By GlobalDataThe offer will be open until 11 November and the Capespan board has said it will publicly respond with its opinion on the bid by 8 August.
Capespan group managing director Johan Dique said the company would continue as normal by implementing its growth strategy. “This shouldn’t be affected by the possible new shareholding. We remain committed to customer service at both ends of the value chain, namely supplying fresh fruit to global markets in mainly the northern hemisphere and market access to growers worldwide.”
