PIC inquiry told about terms of Daybreak deal to select investors
Testimony implies Matome Maponya Investment Holdings got the corporation to fund its 54% stake in the business and provide all required debt while receiving a fee of nearly R12m
The terms of deals offered by the Public Investment Corporation (PIC) to select partners came under scrutiny at the inquiry into the state-owned asset manager on Wednesday. This was as it heard details about the acquisition of poultry producer Daybreak Farms in 2015 on behalf of a consortium led by businessman Kholofelo Maponya. The inquiry is being chaired by retired Supreme Court of Appeal judge Lex Mpati.
According to the testimony of the PIC’s head of impact investing, Roy Rajdhar, who had oversight of the transaction when it was implemented in 2015, the PIC facilitated the acquisition of Daybreak Farms, considered a “distressed asset”, from agricultural services group Afgri after being approached by Maponya of Matome Maponya Investment Holdings (MMI). Daybreak Farms, which is based near Delmas, Mpumalanga, grows and slaughters more than a million birds per week. The PIC had previously funded Maponya to acquire a stake in Afgri. Rajdhar would later become a non-execut...