Zeder’s companies target acquisition opportunities
CEO Norman Celliers says rival companies that were once considered too expensive are now being revalued
Agribusiness conglomerate Zeder Investments says the companies under its control are open to making acquisitions because some of their competitors are being revaluated. Zeder, which has substantial stakes in listed food businesses, has seen several of its own holdings drop in value over the past year as investors grew weary of companies that are consumer focused. Its 27% holding in Pioneer Foods is valued at R4.92bn, down from the R7.66bn it was priced at in February 2018. Its 41.1% share of Kaap Agri is now worth R968m, after it fell from R1.37bn. Zeder, which is controlled by investment group PSG, increased its overall holding in Quantum Foods from 27.7% to 29.3% over the same period but its overall valuation in this business had fallen from R246m to R234m.
Its annual results to end-February showed that the sum-of-the-parts (SOTP) value per share, a method used to evaluate a conglomerate to determine what its aggregate divisions would be worth if they were to be disposed ...