Now a force to be reckoned with
SENWES AND MGK, the very successful grain co-op in the Brits area, have at last decided to sort of join forces. Oh, apologies: MGK hasn’t been a co-op for a long time. In fact, I’d the privilege of being involved in its conversion from a co-op to an agricultural company. And it has all the signs of a prosperous union.
Quite a number of years ago Senwes obtained control of the Vaalharts co-op – in what later appeared to be a very unhappy deal. The well-known Zeder Investments (in the PSG stable), along with Thembka, in turn obtained a 47% interest in MGK.
The transaction between Senwes and MGK is basically that MGK became Senwes’s specialist irrigation division and as a first step MGK took over Senwes’s operations in the Vaalharts area. In turn, Senwes then bought the joint interest of 47% Zeder and Thembka held in MGK.
Senwes, with its head office in Klerksdorp and MGK (in Brits), plus the Vaalharts area, is now suddenly a force to be reckoned with on the JSE that could easily start competing against Afgri, even among institutional investors. (See “Preparing for listing” in Finweek 19 August 2010.)