Zeder Investments says that good agricultural conditions had contributed to improved performances across its portfolio, but warned shareholders to continue exercising caution when dealing with its securities as it continued negotiations with third parties interested in acquiring some of its investee companies. Picture Henk Kruger/African News Agency (ANA)
ZEDER Investments says that good agricultural conditions had contributed to improved performances across its portfolio, but warned shareholders to continue exercising caution when dealing with its securities as it continued negotiations with third parties interested in acquiring some of its investee companies.
Zeder has invested in companies such as Capespan, Kaap Agri, Zaad, The Logistics Group and Agrivision Africa.
Zeder received approaches from third parties regarding some of its portfolio of investments on April 14.
“Zeder is still considering the approaches in the context of its ongoing strategic review and continues to engage with certain of these parties.
“While substantial progress has been made in this regard since the announcements, the impact of the Covid-19 pandemic has delayed certain aspects of the process.
“We will keep the market updated, but it will take several more months to evaluate,” the group said.
In an operational update released yesterday, the group said the macro environment in which it operates remained favourable, largely due to improved agricultural conditions, especially in the Western Cape.
In Kaap Agri, where Zeder holds a 42.3 percent stake, the company delivered solid interim financial year 2021 results with an increase in recurring headline earnings per share of 23 percent.
“Agricultural conditions in the Western Cape remain favourable, with promising winter rainfall, and Kaap Agri should benefit from the same in the short to medium term,” the group said.
However, Zeder’s sum-of-the-parts value per share decreased from R4.33, as at the end of February, to R4.25 as at July 7, mainly as a result of the 20 cents a share special dividend paid during May and the resultant lower cash balance.
However, Zeder’s portfolio companies have largely been resilient during the Covid-19 pandemic, and good agricultural conditions contributed to improved performance across the portfolio.
In the Capespan farming operations, which consists of citrus and pome, the company had positive agricultural seasons and produced good volumes, and though the stronger rand was negatively affecting prices in the international market, the South African and African markets remained at decent price levels.
Zeder Investments closed 1.02 percent higher at R2.97 on the JSE yesterday.
sandile.mchunu@inl.co.za
BUSINESS REPORT
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