South African agricultural group Afgri announced on Wednesday that the Agri Sizwe empowerment trust had acquired 26.77% of Afgri Operations for R502-million.
Afgri shareholders will benefit by way of a R368-million special distribution of the proceeds in the form of 110.5 cents per share dividend.
Afgri will cede R100-million rand as refundable collateral to the Land Bank, which is funding the transaction.
Afgri Operations will continue to manage the business in terms of a partnership agreement concluded with the trust.
The intention is to convert the trust’s interest in Afgri Operations into a 25.1% direct shareholding in Afgri once the Land Bank loan is repaid over eight years.
The trust comprises a combination of black business leaders and empowerment entities.
The trust beneficiaries are: Agri Sizwe, Afgri Operations Empowerment Scheme, the National African Farmers’ Union, the South African Agricultural Plantation and Allied Workers’ Union, represented by Basebenzi Investments, the National Emergent Red Meat Producers’ Organisation and women’s group Bunang Investments. – I-Net Bridge.