ASTRAL FOODS ACQUIRES 6.42% STAKE IN QUANTUM

ASTRAL Foods confirmed yesterday that it had acquired a 6.42 percent stake in Quantum Foods Holdings, South

Africa’s largest table egg producer with poultry breeding, broiler and animal feed operations in southern Africa. Astral, the country’s leading integrated poultry producer, said following a material change in the shareholding of Quantum, it had been concerned that its current broiler supply agreement with the company could be jeopardised in the long-term. The group said Quantum supplied 30 percent of Astral’s live broiler chickens processed in the Western Cape, which equated to about 12 percent of the total broilers being slaughtered by the Astral Group. If there was to be a change in control of Quantum, it could adversely impact the broiler supply agreement with them, and Astral would most probably have to consider a significant investment in broiler production capacity to ensure the continued supply of live broiler chickens to its County Fair operation in the Western Cape. Astral chief executive Chris Schutte said: “The rationale for Astral acquiring a minority stake in Quantum was to ensure that Astral’s current arms-length medium to long-term supply agreement with them remains intact.” Silverlands II SCSp, a Luxembourg-based investment fund, acquired a 32 percent stake in Quantum last week and Astral said its acquisition of the minority stake in Quantum would also assist that minority interests in Quantum are protected. Astral shares closed

0.69 percent lower at R148.30 on the JSE yesterday.