Hitch­ing up

Now a force to be reck­oned with

Finweek English Edition - - Companies & Markets - VIC DE KLERK vicd@fin­week.co.za

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.)

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