Changes afoot at Capespan
The first of these appeared to be a bit of house-keeping when late last year Capespan sold its ExperiCo division as a going concern to Farmsecure Agri Science.
The deal may fuel speculation that Capespan is heading towards a focus on the logistical side of its business operations in the future.
At the time, executive director, Dawie Ferreira, said the company mas moving towards a focus in its core business activities - fruit marketing and logistical servies. “We realised that we didn’t need to own Experico to have access to its expertise and support, seeing that it had been providing services to all exporters. Capespan will still have access to ExperiCo’s know-how in much the same way as has been the case over the last few years.”
Ferreira also noted that as a customer-driven fruit marketing entity, Capespan was expanding its presence in global fruit markets and providing customers with the desired product all year round. “Our logistical business focuses on utilising our capabilities in port and inland terminals to deliver integrated logistical solutions.”
The second change was more strategic. The company announced that it had concluded negotiations to acquire the reaming 50% shares in Cape-Span Holdings Limited, from Ireland based Total Produce.
Interestingly, Total Produce owns a 20% share in Capespan. The transaction will be settled in cash as well as by the issue of new Capespan shares to Total Produce. In fact the proposed issue of new shares to Total Produce will push the Irish company’s stake in Capespan to 25%.
Assuming the transaction takes place then Total Produce will become the second largest shareholder in Capespan, behind PSG's Zelder Investments.
Dique said the acquisition of Capespan International would allow Capespan to align its service offering directly with customer demands that will strengthen operations for future growth.
He added that Total Produce’s increased shareholding in Capespan would enhance the strategic alliance and partnership between the two parties in the fruit industry globally.
Source: www.cbn.co.za
