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ZEDER INVESTMENTS LIMITED - Voluntary Announcement Zaad Concludes Agreement to Acquire 40% Stake in East African Seed Company Limited

Release Date: 28/08/2019 09:00
Code(s): ZED     PDF:  
 
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Voluntary Announcement – Zaad Concludes Agreement to Acquire 40% Stake in East African Seed Company Limited

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

VOLUNTARY ANNOUNCEMENT – ZAAD CONCLUDES AGREEMENT TO ACQUIRE 40%
STAKE IN EAST AFRICAN SEED COMPANY LIMITED (“EAS”)

Zeder is an active investor in the broad agribusiness and related industries. Its portfolio
consists of strategic interests in leading companies that provide it with a diversified exposure
across the agribusiness spectrum, ranging from strategic agri-inputs to fast moving consumer
goods. Zeder actively drives and assists with portfolio and investee strategies, while
monitoring and overseeing optimal capital allocations to ensure sustainable investment
returns.

Shareholders of Zeder (“Shareholders”) are advised that Zeder’s subsidiary, Zaad Holdings
Limited (“Zaad”), has concluded an agreement (“Agreement”) to acquire (through a
combination of an acquisition and subscription) a 40% stake in the EAS group of companies,
with an option to acquire an additional stake in the future.

Over the past number of years, Zeder has established and positioned Zaad as a strategic
holding company that invests and operates in the specialised agri-inputs industry with a focus
on emerging markets, especially Africa. Through acquisitions and organic growth, it has
aggregated and developed attractive businesses and currently owns, develops, imports and
distributes a broad range of agricultural seeds in Africa, Europe and other international
emerging markets. Through its subsidiaries and associates (inter alia, Agricol, Klein Karoo
Seed Marketing, Bakker Brothers, May Seed and Nuvance) it has a history spanning more
than 50 years of developing, distributing and owning leading seed genetics in Southern Africa,
the Middle-East, Turkey and the Netherlands. In recent years, Zaad has added strategic plant
nutrition and agrochemicals to its portfolio to complement its product offering, particularly in
emerging markets with the Farm-Ag and Hygrotech acquisitions.

EAS was established in 1972 and has steadily grown to become the leading independent seed
company within the East and Central African regions. It has business operations in Kenya,
Uganda, Rwanda, Tanzania and Zambia and its products are distributed through a wide
distribution network of appointed dealers and stockists in major cities and towns throughout
Eastern and Central Africa.

Zaad has identified East and Central Africa as important growth areas for seed and
agrochemicals, and upon completion, this investment will provide Zaad with access to these
markets. Furthermore, Zaad’s seed products and genetics will enhance the profile of the EAS
group of companies.

It is noted that the Agreement is still subject to several conditions precedent, including receipt
of relevant regulatory and competition approvals. Zeder will advise Shareholders, by way of
an announcement, once the Agreement has become unconditional.

Maitri Capital acted as sole financial advisor to EAS group of companies and Anjarwalla &
Khanna acted as legal advisor to the EAS group of companies.
28 August 2019

Sponsor and Transaction Adviser to Zeder and Zaad
PSG Capital

Date: 28/08/2019 09:00:00
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