Financial Institutions

Verdant Capital Sole Advisor for the Sale of 100% of Nedan

Philafrica Foods (Pty) Ltd. (“Philafrica”), a subsidiary of AFGRI Group Holdings (“AFGRI”), has sold its soya oil crushing plant, which trades in the market under the names Nedan, Marathon, Soya Ya Ka, Promax (soya oil cake). Verdant Capital is pleased to have acted as financial advisor to Philafrica for this transaction.

Philafrica, based in South Africa, is an investment company involved in food processing in South Africa, Mozambique, Ghana and the Ivory Coast. Its focus is on expanding food sourcing and production across the continent.

AFGRI is owned by Helios Fairfax Partners, which is a leading pan-Africa-focused alternative investment manager, and the Public Investment Corporation of South Africa. The transaction reinforces Verdant Capital’s position as a leading advisor to the private equity sector in Africa.

The sale of Philafrica’s soya oil business is motivated in part by the overall strategy of AFGRI to focus on its core business, which involves providing leading agricultural services to South African farmers, ensuring a food secure South Africa. The acquiror is majority BBBEE-owned party, and the transaction marks an important contribution to the transformation of foods sector in South Africa.

The successful mandate is Verdant Capital’s fourth successful transaction in the agri-business and food sector in the last 18 months. Verdant Capital expects an increase in transactions in the sector over the next 24 months, driven by fundamental demand drivers as well the number of private equity investments from the last decade which are now reaching maturity. Verdant Capital is currently engaged on other transactions in the sector.