Total Produce to sell 25% Capespan stake

Fruit and vegetable distribution company Total Produce has reached agreement to sell its 25.3% stake in South African fruit supplier Capespan for €22m.

The sale — to South African investment firm, Zeder Financial Services — is expected to close during the coming weeks. However, Total Produce — the former general produce arm of Fyffes — said yesterday that due to the overall consideration being paid in South African rand, the euro value of the deal, and the profit the Dublin-based firm will make on disposal, may vary “subject to currency fluctuations between today and the date of completion”.

Total became the second largest shareholder in Capespan at the beginning of last year, after selling its 50% stake in the group’s European business. That deal gave the Irish firm €8.5m in cash and an additional 20 million shares, — or another 6.3% stake — in the Capespan Group.

The disposal of the 25.3% stake came after Zeder made an offer for the holding and Total conducted a strategic review of the long-term benefits of holding a minority stake in Capespan.

“We have enjoyed an excellent relationship with the Capespan team since 1999, and would like to thank them for their valued performance and contributions over the years. We look forward to continued trading links with Capespan, and would like to wish them and Zeder every success in the future,” Total’s chief executive, Rory Byrne said.

Last month, Total Produce said it will continue to pursue investment opportunities, this year, on the back of a strong 2012, which saw the company’s net revenues increase by 11% and adjusted pre-tax profits jump by 19%.