A black economic empowerment (BEE) company led by Mutle Mogase, chairperson of Vantage Capital, has bought a 28% stake in the Goedemoed, Vredendal, grape and tomato farming business run by Abrie Botha, a leading figure in Western Cape agriculture.
The deal, the value of which was undisclosed, includes the Goedemoed farms covering 125ha on the West Coast, and AB Packers, a packaging and distribution business supplying retailers such as Woolworths and Pick ‘n Pay. Funding for part of the transaction and capital for expansion were both arranged through Nedbank Business Banking’s specialist agricultural unit in Paarl.
Coupled with a capital injection to expand Goedemoed’s farming and packaging operations to meet growing demand from retailers, the deal would also help boost profitability for a workers’ trust, said Botha, who is chairperson of Vinpro, the wine industry producers’ association, and a director of KWV.
He is also chairperson of Westcorp International, one of South Africa’s largest wine producers that sells 70-million litres of wine annually, and of Nuced, its distribution subsidiary.
Botha explained that the transaction meant that Goedemoed, which delivers wine grapes to Westcorp International, and AB Packers, will be one of the country’s only BEE-accredited farming and packshed operations that can supply the large volumes sought by retail clients.
“Goedemoed empowered its workers in 1999 by incorporating them in a 50ha vineyard income project. The Olifantsrivier Workers’ Trust has a 30% share in the profits of this project. The latest transaction coupled with the capital injection should yield increased profitability for the workers’ trust.”
Mogase has been involved in several pioneering deals and processes, including Real Africa Investments, Vantage Capital, the first independent black private equity firm, and Incwala Resources. He was a member of the group that developed the Financial Sector Charter and served on the first charter council.
“As BEE shareholders, we aim to contribute by developing new business opportunities and to promote growth by helping to transfer skills from Goedemoed,” said Mogase.
“Great potential lies in the fresh product packing business, especially at the top end.”
AB Packers employs up to 150 workers, while packing and delivering peppers, table grapes and tomatoes mainly to Woolworths and Pick ‘n Pay. Goedemoed and AB Packers, which have been certified as meeting international market standards, have been supplying Woolworths since 1985. – I-Net Bridge