Zeder looks to level portfolio as valuations rise
Agrivision’s milling and farming operations have reached a point of stability and should grow from this point onwards. Further investment is anticipated, but will not be rushed.
According to results for the year to February released on Monday, Pioneer, another subsidiary of Zeder, performed exceptionally well. With the stake, worth R10.3bn, it represents about 66% of Zeder’s R15.4bn sum-of-the-parts (SOTP) valuation.
Zeder CEO Norman Celliers said the company was aware of market observations around the holding in Pioneer.
"We are looking at rebalancing the portfolio, but we would prefer to grow our other investments rather than unbundling our Pioneer investment. We love Pioneer," he said.
Pioneer’s overwhelming portfolio presence remained despite a 74% gain in the value accorded to the 39.8% stake in soon-to-be-listed retailer Kaap Agri (from R758m to over R1.3bn). Other meaningful constituents of Zeder’s portfolio include a 92.3% stake in seed specialist Zaad (valued at R1.5bn), 97% of fruit exporter and logistics specialist Capespan (worth almost R2bn), 55.9% of Zambian agribusiness Agrivision (R614m) and 26.4% of agricultural commodity business Quantum Foods (R193m).
While Zeder’s performance is best gauged by the growth in its SOTP valuation, which was up 23.1% to 853c a share, cash flow generated from operating activities (including investment income) was a solid R176m.
This underpinned a dividend of 11c a share — up 22% on the previous year. Arguably, the most intriguing development, reflecting Zeder’s results, is the reporting of the first meaningful profits at Agrivision.
source: businesslive.co.za, moneyweb.co.za
