Battle of the agribusinesses: Senwes vs Subtropico
Proposed deals to take over KLK come after last year’s mega-merger between Acorn Agri and Overberg Agri
Further consolidation in the local agribusiness sector looks on the cards with two takeover pitches in play at KLK, a R2.2bn-a-year farming services specialist based in the Northern Cape. In November agribusiness Subtropico, which already holds an influential 30% shareholding in KLK, issued a takeover bid at R17.50 a share. A scrip alternative offers one Subtropico share for every six KLK shares held. But late last month Senwes, one of SA’s biggest agribusinesses, also launched a takeover bid for KLK, offering R18.50 a share. The Senwes proposal also provides a scrip settlement alternative, offering shares in Senwes — or its holding company Senwesbel — in the ratio 1.4 shares to 1.8 shares per offer share. Both Senwes and Senwesbel shares are listed on ZAR X, one of SA’s new stock exchanges. At the time of writing, KLK’s independent board was still evaluating the merits of both proposed deals. The Subtropico offer represents a 12% premium to KLK’s R15.60 over-the-counter share price...
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