Total Produce buys more Capespan

FRUIT DISTRIBUTOR Total Produce has increased its stake in South African fruit exporter Capespan.

The move comes as Capespan announced it was in negotiations which, “if successfully concluded, may have a material effect on the price of the company’s securities”.

A spokesman for Total Produce said yesterday the company had no comment to make on the increase in its shareholding.

The development comes a few months after two other shareholders in Capespan embarked on a bidding war for South Africa’s biggest fruit exporter.

Bidvest, which has a 7.9 per cent holding in the company, offered to buy 50 million shares at 2.40 rand (€0.21) per share earlier this year. This followed a formal offer in June from Zeder Investments, which then owned 32 per cent of the company, to buy the shares it did not own in the company for 2.25 rand (€0.20) per share. It has since increased its shareholding to 40 per cent.

Capespan’s share price closed at 2.40 rand yesterday.

While Total Produce could potentially bid for Capespan, another possibility could be a partnership with Zeder, an investment company which specialises in agricultural assets. Capetown-based Capespan had no comment to make yesterday when contacted by The Irish Times.

Total Produce indicated in September it was pursuing investment opportunities in both new and emerging markets.