Otk Sells Red Meat Business As Part Of Restructuri
PRESS RELEASE
Agri-business group OTK has announced the sale of its red meat business to
Umanyama, a joint venture company between Vleissentraal and empowerment group
National Emergent Red Meat Producers Organisation Investments Limited (NERPO),
for an undisclosed sum.
This is part of a broader restructuring of OTK, and follows an earlier
announcement that it intended to exit certain non-core businesses.
Richard Potash, managing director of OTK's AgriFinance division, says the red
meat business represented a small part of OTK's total business and its sale is
one of the initiatives to allow the group to focus on its core operations.
The red meat business comprised an abattoir, feedlot and background farm for
the rearing of weaners. "The buyers are acquiring some good assets and it fits
perfectly with their core business," says Potash.
Last month OTK announced the sale of its R921-million interest-bearing debtors'
book to Wesbank and the Land Bank, to improve return on shareholders funds and
generate cash for return to shareholders and deployment in higher yielding
assets.
OTK managing director Graham Ebedes said OTK's financing operations represented
an inefficient use of its capital and exposed it to substantial debtors risk.
However, he said that OTK would continue to manage the total debtors book, with
credit decisions being made by the same personnel as at present, acting in
terms of credit criteria and policies which had proved successful in the past.
Ends
ISSUED FOR : OTK HOLDINGS LIMITED
CONTACT : Graham Ebedes (011) 706 7897 Cell 083 225 1699
FAX NO: : (011) 463 4139
E-MAIL : gebedes@otk.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart (011) 325 4195 Cell 082 443 6399
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 23 March 2001
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