Business / Companies
CFI finds investor for Victoria Foods
27 Mar 2013 at 14:54hrs | Views
CFI has secured an investor for its milling business Victoria Foods while there are discussions with a potential investor for one of the poultry arms, group CEO Steve Kuipa told the AGM this morning.
"We believe we have now found a suitor for our milling division and the structure of the offer has been approved by the board," he said.
He added that at the moment they are engaged in the regulatory and compliance process which is required by the investor and other agencies.
An EGM shall be held in due course with Kuipa saying the specific details to shareholders will be available in 30 days.
On the poultry division Kuipa said he believed the transaction will "address some bottlenecks and inefficiencies imposed by the aging infrastructure".
"The two transactions will be completed within 3 to 4 months at the latest," he added.
He also said funding from the PTA bank has had a positive impact on the business.
"At Victoria foods, the funding has resulted in improved milling extraction efficiencies while margins on snacks and down-packed products have been enhanced."
Kuipa also said the 14% stake in windmill has not been sold yet while a sale of a property in the retail division is expected to raise $1.4 million.
On operations, Kuipa said the demand for poultry remains firm but operational efficiency is hindered by frequent equipment breakdown.
The retail unit had a very good quarter, Kuipa said, underpinned by surging volumes in Agro-inputs sales.
New tenants are lined up to take over space which used to be occupied by Afrofoods.
Giving the financial update for the 5 months to February 28, revenue declined 7% to $45.8 million, while margins increased by 3.4% as a result of the impact of PTA funded projects.
Expenses declined by 11% because of declining volumes and cost containment.
Shareholders approved directors fees of $144 233 and auditor's fees of $224 755 for Deloittes who were also retained as auditors for the ensuing year.
"We believe we have now found a suitor for our milling division and the structure of the offer has been approved by the board," he said.
He added that at the moment they are engaged in the regulatory and compliance process which is required by the investor and other agencies.
An EGM shall be held in due course with Kuipa saying the specific details to shareholders will be available in 30 days.
On the poultry division Kuipa said he believed the transaction will "address some bottlenecks and inefficiencies imposed by the aging infrastructure".
"The two transactions will be completed within 3 to 4 months at the latest," he added.
He also said funding from the PTA bank has had a positive impact on the business.
"At Victoria foods, the funding has resulted in improved milling extraction efficiencies while margins on snacks and down-packed products have been enhanced."
Kuipa also said the 14% stake in windmill has not been sold yet while a sale of a property in the retail division is expected to raise $1.4 million.
On operations, Kuipa said the demand for poultry remains firm but operational efficiency is hindered by frequent equipment breakdown.
The retail unit had a very good quarter, Kuipa said, underpinned by surging volumes in Agro-inputs sales.
New tenants are lined up to take over space which used to be occupied by Afrofoods.
Giving the financial update for the 5 months to February 28, revenue declined 7% to $45.8 million, while margins increased by 3.4% as a result of the impact of PTA funded projects.
Expenses declined by 11% because of declining volumes and cost containment.
Shareholders approved directors fees of $144 233 and auditor's fees of $224 755 for Deloittes who were also retained as auditors for the ensuing year.
Source - zfn
