A cautionary announcement by fruit marketing and logistics services group Capespan late last month certainly got tongues wagging in the Western Cape agri-business sector .


The announcement was released shortly after news that the major shareholder, Total Produce Plc, had increased its stake in the unlisted company from 15% to 20%. (See FM Fox November 25.)
Total Produce is now the second largest shareholder in Capespan. It is wedged between PSG-controlled Zeder (with over 40%) and Brian Joffe’s Bidvest (around 7%), which have both begun to build major equity positions in the company. Initial speculation centred on possible developments among Capespan’s three major shareholders. Some market watchers even punted a possible JSE listing .

Some might view an acquisition as a damp squib compared with the three- way tussle for influential shareholdings in Capespan. But even a small acquisition would serve to remind investors that Capespan, now headed by former Senwes boss Johan Dique, is a business in transition. There is much talk about the potential of the company’s logistical services in ports and inland terminals (which is probably why Bidvest, with strong logistics leanings, is chasing Capespan).

Dique turned an ailing Senwes into one of SA’s strongest agri-businesses between 2000 and 2010. He has been widely tipped to bring operational traction to Capespan.
Over the past decade, its performance has been inconsistent.
The smart money will be betting on Dique making a bolt-on acquisition for the logistics division in a bid to offer clients integrated logistics services.
Last month Capespan — which has an inferred market value of around R800m — sharpened its focus on its fruit marketing and logistics services when it sold off fruit technology business ExperiCo to Farmsecure Agri Science.