Total Produce plc announced on 23 December 2011 that it had sold its 50% shareholding in the European distribution business Capespan International Holdings Ltd (Capespan Europe), to Capespan Group Ltd in South Africa (Capespan South Africa), in exchange for an additional 20 million shares in Capespan South Africa and 8.5m in cash.
The transaction was subject to regulatory approval, and the issue of the shares was subject to the approval of Capespan South Africa shareholders.
Total Produce is pleased to confirm that as regulatory approval for the transaction has been obtained, 8.5m cash has now been paid to Total Produce. The final stage of the transaction, the issue of an additional 20 million shares in Capespan South Africa, will be put forward for approval at a Capespan South Africa shareholder meeting in February.
In combination with the shares acquired in the market in 2011, this transaction will result in Total Produce increasing its shareholding in Capespan South Africa to 25% and being its second largest shareholder.
Capespan South Africa and Total Produce both previously owned 50% of Capespan Europe. The full merger of Capespan Europe with Capespan South Africa will result in the alignment of the offering to provide the best possible service to customers.
Capespan Europe reported an operating profit of Stg. £2.0m pre-exceptional costs in 2010 and had net assets before goodwill and intangibles of Stg £5.75m. This transaction has increased Total Produces cash balance by 8.5m, for use in the continued expansion of the group.
9 January 2012
For further information, please contact:
Brian Bell, Wilson Hartnell PR
Tel: +3531 669 0030