Afgri Limited
Share Code: AFR
ISIN Code: ZAE000040549
Agricultural services group Afgri has secured a foothold in the growing
Australian agricultural market following its acquisition for A$10,2 million (R53
million) of T&H Walton, the largest dealer in John Deere farming equipment in
Western Australia.
Afgri managing director Jeff Wright says the acquisition is in line with the
group`s strategic intention to expand into new geographies.
"This acquisition was concluded at net asset value, and represents an excellent
opportunity for Afgri to establish a presence in the Australian market and
generate rand hedge earnings. Once the acquisition has been bedded down, we will
be able to leverage products and services from our South African operations into
the Australian market."
One of the opportunities being explored is the possibility of introducing
precision farming technology and equipment to Australia, where this is still in
its infancy. Afgri is a market leader in precision farming. The anticipated
deregulation of the Australian grain industry also presents opportunities for
expansion.
CEO of Afgri Requisites, Anton Visagie, says the founding entrepreneur Hal
Walton will be retained as managing director, along with the remainder of the
management team: "SA companies do not have a good track record of managing
businesses effectively in Australia," he says. "We are determined to avoid
making the same mistakes, and a condition of the transaction is that the
existing managing director remains for a period of at least three years to allow
us time to settle in."
Visagie says the Australian agricultural equipment market dwarfs that of SA.
Walton is a family-owned business established in 1967. It has expanded steadily
across the Australian mid-west, and currently has operations in Geraldton,
Carnamah, Moora and Morawa, all in Western Australia.
Walton commands the majority market share in its designated area of
responsibility and accounts for 21% of John Deere tractor and 43% of combine
sales in Western Australia.
A new company, Afgri (Australia), has been formed to house the group`s
Australian operations and provide strategic and operational support to Walton.
The corporate office will be based in Geraldton (Western Australia).
ISSUED FOR : Afgri Limited
CONTACT : Jeff Wright (011) 706 7897 Cell 082 806 1284
Anton Visagie (012) 346 9066 Cell 083 642 7316
FAX NO : (011) 463 4139; (012) 346 9037
E-MAIL : jwright@afgri.co.za
avisagie@afgri.co.za
WEBSITE : www.afgri.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 : 30 January 2003
Date: 30/01/2003 12:30:00 PM Produced by the JSE SENS Department
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