| Wed 14 Dec 2011, 15:00 | | SKJ - Sekunjalo Investments Limited - Press Release |
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SKJ
SKJ
SKJ - Sekunjalo Investments Limited - Press Release
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/006093/06)
Share code: SKJ & ISIN: ZAE000017893
("Sekunjalo" or "the Company")
PRESS RELEASE
SEKUNJALO ACQUIRES A STAKE IN PIONEER FOODS GROUP LIMITED IN A DEAL WORTH
R95MILLION
The deal enhances our investment holding company strategy and complements our
existing food portfolio
Sekunjalo Investments Limited ("Sekunjalo") today acquired a stake in Pioneer
Foods Group Limited ("Pioneer Foods") worth more than R95million. This
represents 0.75% of the listed Pioneer Foods.
According to Sekunjalo`s CEO, Khalid Abdulla, the deal is significant for
Sekunjalo and is perfectly aligned with the company`s strategy to diversify its
business and enhance value through strategic and operational investments in key
sectors of the economy.
Abdulla says Sekunjalo has considered investing in the food sector for some
time.
"We believe the food sector will achieve significant growth over the medium to
long term," says Abdulla. "One of Sekunjalo`s other food sector investments is
Premier Fishing SA (Pty) Limited, which recently posted strong results during
the last financial period.
As an investments holding company, "Our investment in Pioneer Foods will not
only complement our food portfolio but also complement our interests in the ICT,
marine, healthcare, telecommunications and industrial sectors - all key growth
sectors of the economy."
Abdulla says Pioneer Foods is a significant player in the food sector, not only
in SA, but in southern Africa. It is also a notable exporter. "Pioneer Foods has
strong product lines including Bokomo, Ceres, Heinz etc. and consistently
generates strong earnings and cash," according to Abdulla.
After posting strong results for 2010 and 2011, Abdulla stated that Sekunjalo
will continue its strategy of pursuing strategic acquisitions as a partner of
choice.
The company`s efforts in this regard are ongoing, according to Abdulla. Over the
past three years Sekunjalo successfully acquired stakes in British Telecoms
("BT") and Swedish multinational company SAAB SA. Sekunjalo recently received a
maiden dividend of R13m from our strategic investment in BT.
This strategic investment, amongst others also compliments and builds on our
successes of existing businesses, strategic holdings as well as the success in
our operational businesses.
"A key strategy is positioning Sekunjalo as a partner of choice. Key to the
success of this strategy is our ability to add value to our existing business as
well as the businesses we invest in," says Abdulla. Sekunjalo`s executives sit
on the boards of SAAB, BT and Pioneer Foods.
Abdulla also says "this deal firmly entrenches our position and paves the way
for Sekunjalo to pursue interests to grow the asset base as well as increasing
the company`s networks."
Sekunjalo acquired the stake at a 5% discount of the market price under a
special arrangement as part of Pioneer Foods B-BBEE strategy. Under the scheme
there is a lock-in period. The deal is 90% vendor-financed with Sekunjalo
funding the balance.
"We are proud of our new acquisition and proud to be part of the Pioneer Foods
Group" says Abdulla.
For further comment, please contact Khalid Abdulla on 082 892 7889 or
khalid@sekunjalo.com
For media queries, please contact Kaveer on 082 928 0524 or
kaveer@ubiquity.co.za
Cape Town
14 December 2011
Sponsor
PSG Capital
Date: 14/12/2011 15:00:16 Produced by the JSE SENS Department.
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