Following the December announcement by Total Produce that it had sold its 50 per cent shareholding in the European distribution business Capespan International Holdings Ltd (or Capespan Europe) to Capespan Group Ltd in South Africa (or Capespan South Africa), in exchange for an additional 20m shares in Capespan South Africa and €8.5m in cash, the Ireland-based group has confirmed that the €8.5m cash payment has been made.
The transaction was subject to regulatory approval, and the issue of the shares was subject to the approval of Capespan South Africa shareholders.
The final stage of the transaction,
the issue of an additional 20m 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 per cent and becoming its second largest shareholder.
Capespan South Africa and Total Produce both previously owned 50 per cent of Capespan Europe, with the full merger of Capespan Europe with Capespan South Africa resulting in the alignment of the offering to provide the best possible service to customers.