Zeder selling its stake in The Logistics Group

Zeder is in the process of selling its 98,22% stake in The Logistics Group (TLG) to African Infrastructure Investment Managers for R1,6 billion.

Johann le Roux, CEO of Zeder, said the sale was at an advanced stage, pending approval of shareholders and the Competition Commission.

Some market observers had questioned whether the transaction extracted full value for Zeder, as its holding in TLG had been valued at R1,4 billion on 31 August 2021.

TLG also reported recurring headline earnings of

R90 million for the six months ended 30 June 2021, representing a year-onyear increase of 186%.

However, Le Roux responded by saying that the transaction should be measured against the fact that TLG had been valued at R978 million in 2019.

“We didn’t actively seek a buyer for TLG; the buyer approached us. It also makes sense for us to sell our stake, as we are focused primarily on agriculture-related businesses, and TLG, which started out as a Capespan subsidiary supplying fruit logistics services, has since evolved its service offering and capabilities into mining and has also [expanded] into Southern Africa,” he said.

Zeder was also considering several other approaches from third parties interested in acquiring a number of Zeder portfolio investments.

Le Roux was unwilling to disclose any more information about these negotiations, but said that shareholders should exercise caution when dealing in the companies’ securities, as transactions might have a material impact on the price of these securities.

He expected 2022 to be a good year for Zeder, thanks to favourable climatic conditions in general, but added that companies’ growth, as a rule, would depend greatly on South Africa’s economic recovery. – Glenneis Kriel