PIC-funded Pelo-Karan Beef deal could soon be dead meat
No clear reason has been given for why the asset manager might want to pull out of the much-lauded deal
The Public Investment Corporation’s (PIC’s) plans to transform the livestock and red-meat industry through the acquisition of a R5.2bn controlling stake in the continent’s largest cattle abattoir has hit the skids, with no clear indication of how that deal can be concluded or cancelled.
The PIC announced in October 2018 that it had reached a deal for Pelo Agricultural Ventures, a BEE consortium it was funding, to acquire a majority stake in Karan Beef. The company, started by the Karan family in 1974, operates the largest cattle feedlot and abattoir on the continent. Besides representing a shift in ownership of one of the country’s foremost agricultural producers, the deal also intended to bring more black emerging farmers into the beef production and value chain.