Zeder: Overvalued, and languid in parts
I fear this may be Zeder’s last cycle — because institutional dissatisfaction will surely swell if the status quo remains
I have covered agricultural fund Zeder Investments, a business 42%-owned by financial services company PSG Group, for more than a decade. I also cover its unlisted constituent parts, and I was even involved in the listing of its largest asset, Pioneer Foods. I mention this not as a boast but to put into context the depth of my coverage on the counter and its underlying assets. I have been a harsh critic of the fee structure that PSG imposed on Zeder which, for the second time, was recently amended. I have argued that most of Zeder’s assets had been in a coma for 2016. I also believe the counter is overvalued. Zeder is now in its third life cycle as an owner and operator of agribusiness assets. Unless there is radical change in the structure to unlock value and revitalise the comatose R4.5bn over-the-counter (OTC) and unlisted portfolio, I fear this may be Zeder’s last cycle — because institutional dissatisfaction will surely swell if the status quo remains. When Zeder was founded mo...
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