MARC HASENFUSS: Has Zeder lost its lustre?
I am increasingly wondering whether PSG Group-controlled agribusiness investor Zeder has run its course
I am increasingly wondering whether PSG Group-controlled agribusiness investor Zeder has run its course — at least in its present form. While the group was once ranked among the JSE’s more exciting investment vehicles, the share has recently offered a wider discount with issues such as fickle agricultural conditions and land expropriation eroding sentiment. The fact that Zeder, which carries significant debt of R1.5bn, has failed to bag a sizeable acquisition has also weighed on market perceptions, especially with a steady trickle of news about other agribusinesses moving and shaking. The big issue at Zeder is its 27.1% stake in Pioneer Foods which, even with the share price less than half the levels seen two years ago, still accounts for 43.5% of the portfolio. It is difficult not to view Zeder as a proxy for Pioneer — which means some interesting small investments get overlooked. An obvious solution would be to unbundle the Pioneer stake to shareholders, which would force the mark...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.