After a 30% rise in share price in the past year, Zeder Investments is once again going for growth.
The company, which started life as an agricultural investor, is now expanding its seed business with the overseas purchase of May Seed. The 35% stake was made by Zaad, a subsidiary of JSE listed Zeder.
Zaad serves as Zeder’s focused platform for operationally complementary investments in the strategic agri-inputs sector. Through investments made to date it has established itself as a leading producer, marketer and distributor of a wide variety of agricultural seeds across several countries in Africa and abroad under established names like Agricol, Bakker Brothers and Klein Karoo Seed Marketing.
May Seed has two manufacturing plants and various product registrations. It operates in Turkey but also exports its products to more than 35 countries within the strategic geography of the European Union, Black Sea, Middle East, Africa and Central Asia regions.
May Seed, which specialises in seed, is the largest private sector agricultural seed breeder, producer and distributer in Turkey. The company was founded in the 1970’s and its vision is to become a seed company that offers innovative products which will sustain its global competitiveness.
On Turkey’s borders are two prime seed-buying countries, Russia and Ukraine. While this initial purchase of May Seed is only for a 35% stake, Zeder will be watching results closely and may well take a bigger stake, says Andre Kemp, investment analyst at Zeder.
The existing and potential synergies between Zaad and May Seed are numerous.
The two companies can maximise their Southern and Northern Hemisphere Research and Development capabilities by reducing the development time of new seed varieties. This will put the companies at the forefront of new developments in this competitive market. A definite advantage is the integration of certain seed productions which will optimise the cost of production and lead to higher quality supply.
Sources: SENS, Zeder Analyst
Jeremy Woods trained for three years as a journalist on the Herts Advertiser, St Albans, in the U.K. Once qualified, he left England to work as a crime reporter on the Vancouver Sun in Canada. After three years, he worked for the Los Angeles Times as a trainee financial journalist, spending most of his time reading company accounts and finding publishable stories in them. He moved to South Africa and for the last five years in journalism worked for the Sunday Times, Business Times, as Investment Editor. He has also published a financial thriller called "Special Payments", which was a best-seller on publication, and optioned three times for a film.