Thebe takes control of Pride Milling

Thebe Investment Corporation has taken control of one of SA's largest maize millers, Pride Milling, in a deal funded by Old Mutual Alternative Investments.

The transaction, which saw Thebe buy a further 40% in the maize miller, was done via OM Alternative’s Hybrid Capital Division.

The investment highlights the role that the private sector plays in contributing to industries which underpin food security. Grain producers, processors and distributors play a vital role as they provide affordable food to those who need it.

According to Stats SA, 21% of South Africans reported either inadequate or severely inadequate access to food in 2021. 

“A material portion of our population is unsustainably food insecure,” said Hybrid Capital senior investment associate, Hashim Pohplonker.

“Through Thebe’s acquisition of Pride Milling, supported by Hybrid Capital’s funding, there will be enhancements to the food value chain, employment opportunities and, most importantly, to the availability of affordable, quality and nutritious staple foods for a broad segment of our population.” 

The landmark deal will allow Thebe, a leading black-owned investment company, to achieve a majority stake in Pride, cementing its position in the food processing industry.

Thebe chief investment officer Rapulane Mabelane said the deal aligned with the group’s core purpose, of “driving transformation, growing local industries and building the communities we serve”. 

“By partnering with OM Alternatives Hybrid Capital and the exceptional Pride Milling team, we are well positioned to make a substantial and positive impact on food security,” Mabelane said. 

“Our increased shareholding in Pride Milling will also provide employees of Pride Milling with a direct shareholding in the company and increase supply opportunities for small and women-owned farmers.” 

Pride was established in 2001 with the acquisition of several maize mills, initially a non-branded supplier focused on the Mpumalanga and KwaZulu-Natal regions. It has since grown into a major player in the food processing industry, acquiring a processing and packaging plant in 2003 and upgrading to its first industrial maize mill in 2013. 

The miller concluded an empowerment deal with Thebe in 2019, identifying the investment company as a strategic long-term shareholder.

Jorrie Jordaan, CEO and co-founder of Pride Milling, was optimistic about Thebe’s move to deepen their long-standing relationship, saying that Pride would benefit from expanded resources and strategic support. 

“With the additional resources and strategic guidance, we are poised to expand our operations and continue our journey of providing equitable access to staple foods and playing a role in economic development,” Jordaan said. 

Thebe is no stranger to deal making, owning 25% of Shell’s downstream business in SA.

Shell earlier this year put up for sale its downstream operations in SA is part of the wider group’s efforts to lessen its exposure to the downstream business.

Thebe also owns stakes in Kaya FM.

websterj@businesslive.co.za