Chayton Africa, a subsidiary of JSE listed agri focused investor Zeder Investments, is set to acquire a Zambian maize and wheat milling company Mpongwe Milling in a move that advances Zeder’s newly announced mission.
Zeder announced yesterday that Chayton Africa has reached an agreement with shareholders of Mpongwe Milling to acquire the entire issued share capital in the Zambian milling operation. The price attached to the agreement is $27.5m. A further $2.5m of the purchase consideration is subject to the achievement of predefined future performance.
The agreement comes after Zeder reiterated its mission to grow its footprint within the sub Saharan region. It also comes to pile up the hunt for agri assets across the region by a number of investors from down south and from abroad. The region is seen as an untapped asset in the face of rising food security concerns and deals are flowing. This trend will include the bid to takeover AFGRI by North American investors, AgriGroupe, which is facing opposition from a group of local farmers.
Zeder said yesterday Mpongwe Milling is a good complement to its operations. ‘Chayton Africa’s strategy is to become a diversified agricultural company that owns and operates grain and other related agri and value chain businesses across Southern Africa.”
The Acquisition provides Chayton Africa with an opportunity to expand its product offering across the value chain.
Mpongwe Milling, which has been privately owned by a family since 2006, is a leading maize and wheat mill in the Copperbelt province of Zambia and has been operating as such for over a decade.”
Chayton Africa, through its Zambian subsidiaries, currently owns and operates several large scale commercial farming operations in the Copperbelt and Central provinces of Zambia.
The Acquisition is subject to relevant regulatory authorities.