Total Produce, the fruit distribution company spun out of Fyffes, is set to reap a windfall of at least €7.5m from the proposed sale of its stake in a South African fruit importer.
Zeder Investments, a South African fund, has launched a 486m rand (€50m) takeover bid for Capespan, in which Total Produce holds a 15% stake.
Zeder, which owns a 32% stake in Capespan after raising its stake from 27% by buying shares on the market last month, has written to all minority shareholders offering to buy them out.
Total Produce is the largest shareholder in Capespan after Zeder, which has given the Irish company until July 12 to respond to the offer — open until November.
Capespan’s board has said it will give an opinion on whether shareholders should accept the offer by August 8.
Advertisement
Zeder has offered to buy Total Produce’s stake at R2.25 per share.
However last Friday, the share was trading at R2.45 per share on an over-the-counter market in South Africa, so it might be forced to increase its bid to secure a deal.
Total Produce declined to comment. The company owns a 50/50 joint-venture distribution company with Capespan in Britain, but it is understood that this is unaffected by the takeover bid.
Rory Byrne, the chief executive of Total Produce, is a non-executive director of Capespan. Paul Cluver, the chairman of Capespan, served on the board of Fyffes until May, when he stepped down after 12 years.