ZEDER INVESTMENTS LIMITED - Operational Update and Further Cautionary Announcement

Operational Update and Further Cautionary Announcement

ZEDER INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2006/019240/06)
Share code: ZED
ISIN: ZAE000088431
LEI: 37890022AF5FD117D649
(“Zeder” or “the Company”)

OPERATIONAL UPDATE AND FURTHER CAUTIONARY ANNOUNCEMENT

OPERATIONAL UPDATE

Zeder’s sum-of-the-parts value per share has decreased from R4.33, as at 28 February 2021,
to R4.25, as at 7 July 2021, mainly as a result of the 20 cents per share special dividend paid
during May 2021 and the resultant lower cash balance.

The macro environment in which Zeder and its portfolio companies currently operate, remains
favourable, largely due to an improved climatic cycle. Zeder’s portfolio companies have largely
been resilient during the Covid-19 pandemic and good agricultural conditions have contributed
to improved performances across the portfolio.

Zaad has implemented the acquisition of a 40% interest in EA Seeds (Kenya) during May
2021. This investment will be key to the Zaad group, especially in terms of the distribution of
products through these sales channels.

TLG has good growth prospects and we are excited about the opening of the Ressano Garcia
terminal in Southern Mozambique during June 2021. Ressano Garcia will provide a key benefit
to TLG in terms of the Mozambiquan trade corridor.

Kaap Agri delivered solid interim FY2021 results with an increase in recurring headline
earnings per share of 23%. Agricultural conditions in the Western Cape remain favourable,
with promising winter rainfall and Kaap Agri should benefit from same in the short to medium
term.

The Capespan farming operations (citrus and pome) had positive agricultural seasons and
produced good volumes. The stronger rand is negatively affecting prices in the international
market, but the South African and African markets remain at decent price levels. Disruption in
shipping lines as a result of Covid-19 is affecting Capespan, but it is hoped that this will
normalise towards the end of the year.

At Agrivision Africa, the Mkushi farming area has received good rains, which has enabled the
planting of a full wheat crop. This, and better yields on soya harvested, should lead to improved
results in the short to medium term.

From an operational perspective, Zeder remains focused on growing our investee companies
and we are dedicating time to portfolio investments affected by Covid-19, as well as growth
and acquisition opportunities within the existing portfolio.

As a result of the cautionary announcement under which Zeder shares are currently trading,
the Company has not repurchased any further Zeder shares during this financial year.
The prospects for most of Zeder’s investee companies are promising in the short term, given
the favourable climatical factors. We are committed to creating shareholder value.

FURTHER CAUTIONARY ANNOUNCEMENT

Shareholders are referred to Zeder’s cautionary announcement dated 14 April 2021, advising
that the Company had received several approaches from third parties interested in acquiring
a number of Zeder portfolio investments (“Approaches”), and to Zeder’s further cautionary
announcement dated 27 May 2021.

As indicated in the abovementioned announcements, should the Approaches ultimately result
in the Company entering into transactions with one or more of these parties, such transactions
may have a material effect on the price of the Company’s securities.

Zeder is still considering the Approaches in the context of its ongoing strategic review and
continues to engage with certain of these parties. Accordingly, shareholders are advised to
continue exercising caution when dealing in the Company’s securities until a further
announcement is made.

While substantial progress has been made in this regard since the above announcements, the
impact of the Covid-19 pandemic has delayed certain aspects of the process. We will keep
the market updated, but same may take several more months to evaluate.

Stellenbosch
8 July 2021

Transaction advisor and sponsor
PSG Capital

Independent joint sponsor
UBS South Africa

Date: 08-07-2021 11:20:00
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