Date: 15 November 2021

Verdant Capital has advised Philafrica on the sale of its soya oil crushing interests


Philafrica, a subsidiary of 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). 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.

Verdant Capital expects an increase in transactions in the food and agri 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.  The successful mandate is Verdant Capital’s fourth successful transaction in the sector in the last 18 months, and the firm is currently engaged on other transactions in the sector. 

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