South Africa: Afrifresh taking long term view on Ariston investment
Afrifresh founder and CEO Chris Conradie said that its investment was long-term and had to be backed by strong management in order for the company to return to profitability.
Afrifresh bought a 40% stake initially held by Emvest in a deal executed by InterHorizons Securities. The stake might increase because the group is also the underwriter to Ariston's US$8 million capital raising exercise approved at an extraordinary general meeting earlier this week.
Afrifresh is one of South Africa's top producers and exporters of citrus fruit and table grapes. It is an integrated business with interests in farming, packaging, technical assurance, quality control, marketing, exporting and logistics. Its turnover last year was at US$160 million. Under the dispensation, Ariston will be listed as one of the groups's trading facilities.
The group, Conradie said, sees the agricultural sector as dynamic and exciting, which could be expanded by continually looking for ways to increase farming operations and hectarage. The groups has 40 000 hectares of operations.
Conradie said the group believes there is much greater success in partnerships by integrating the vertical chain in the business.
He said Ariston would be able to take advantages of the synergies that are provided by the group which are spread across some of the continents.
The group is targeting a turnover of US$22,15 million at full year and an operating profit of US$1,09 million. FD Francis Chingozho told shareholders that the group anticipates a pre-tax profit of US$463 000.
Source: allafrica.com
