Bidvest Group, the South Africa-based distribution services and trading business and the largest foodservice business outside North America, has dropped its planned bid to purchase a 15 per cent shareholding in Capespan Group, according to reports.
As revealed by Bloomberg and the Financial Mail, the company has reportedly abandoned the proposed acquisition of a minority share in Capespan, South Africa's largest fresh fruit exporter, although no further details were forthcoming.
In August 2011, it emerged that Bidvest had made an offer to purchase 50m shares for a 15 per cent stake in Capespan, according to reports.
News outlets quoted Bidvest's finance director David Cleasby as saying his company had offered R2.40 (€0.23) for each share, ahead of a similar bid made by Zeder Investments in June.
Zeder, currently Capespan's biggest shareholder, with almost 40 per cent of the group's shares, has been making its own bid for control of the company over the past few months, resulting in it changing from an entirely grower-dominated entity to one in which more than two-thirds of the shares are held by non-growers.
Speculation is now rife that this has opened the door for a formal listing on the stock exchange.
It would appear Bidvest's tentative offer, which topped Zeder's own offer made last year by valuing Capespan at R795m (€77m), is no longer set to be made formal.
In early March, another interested party, leading European fresh produce group Total Produce completed a €13m transaction to increase its own shareholding in Capespan.
The Ireland-based company had previously sold its 50 per cent shareholding in Capespan's European distribution business, Capespan International Holdings, back to the South African group.
The shares were sold in exchange for an additional 20m shares in Capespan Group as well as €8.5m in cash.
With a shareholding of 25.3 per cent, Total Produce is the second-largest shareholder in Capespan Group, behind Zeder.
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