ASTRAL FOODS LIMITED - Astral aquires Western Cape Poultry Assets

Astral aquires Western Cape Poultry Assets

ASTRAL FOODS LIMITED
“Astral Foods” or “the Company”
(Reg. No. 1978/003194/06)
(Incorporated in the Republic of South Africa)
Share Code: ARL
ISIN Code: ZAE000029757


ASTRAL ACQUIRES WESTERN CAPE POULTRY ASSETS

Astral Foods Limited (Astral), one of South Africa’s leading
poultry producers, has successfully acquired certain poultry
assets previously owned by Darling Fresh Chicken (Pty) Ltd (in
liquidation), in the Western Cape.


Chris Schutte, Chief Executive Officer of Astral, comments:
“The abattoir assets previously owned by Darling Fresh Chicken
recently came up for sale on a liquidation auction. Astral
submitted a bid for the abattoir equipment as these assets
would add value to its existing operations. An amount of
R5,1 million secured the abattoir processing equipment for
Astral.”


In a similar move Astral recently acquired certain poultry
assets that belonged to Argyle Poultry Farms in KwaZulu-Natal
following a liquidation sale. Strategically those assets
acquired in KwaZulu-Natal and the abattoir assets purchased out
of Darling Fresh Chicken position Astral well to expand their
footprint in the KwaZulu-Natal market in the fresh and value-
added poultry segments.


However, not only will the recent abattoir equipment purchase
benefit Astral’s Mountain Valley operation in KwaZulu-Natal,
but a large part of the equipment will be put to use expanding
capacity at Astral’s County Fair operation in the Western Cape.


Chris Schutte concludes: “It is unfortunate that the local
poultry industry has seen the demise of a number of smaller
poultry producers. The tough market conditions over the past
two to three years have resulted in a tremendous margin squeeze
that has had a severe impact on non-integrated small- to
medium-sized poultry producers. A number of these producers
continue to face financial distress. The acquisition of
distressed assets supports our commitment to continued local
poultry production and supply.”


Pretoria
28 March 2014

Sponsor
J.P. Morgan Equities South Africa (Pty) Limited

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