AGRIBUSINESS investor Zeder, which is controlled by PSG Group, is now far better positioned for new deal flows and dividend payouts, says CEO Norman Celliers. Speaking after the release of interim results to end-August on Wednesday, Celliers stressed Zeder was no longer constrained in terms of funding potential deal flow by a heavily discounted share price or cash flows. In this regard the start of the second half of the financial year saw the finalisation and internalisation of the PSG management fee agreement. Subsequently PSG’s shareholding in Zeder increased from 34.5% to 42.4% with no further management fees accruing to PSG, aside from nominal administrative services.
Celliers argued the change should be positive for Zeder shareholders. "It is envisaged that Zeder’s free cash flow will improve while the large historical discount between Zeder’s share price and sum-of-the-parts [SOTP] value should decrease over time as there is no longer any management fee liability." Cell...
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