Afgri Needs R410m For Poultry Unit To Fly

by 5m Editor
8 June 2007, at 8:52am

CAPE TOWN - Diversified farming group Afgri plans to spend as much as R410 million on capacity extension at its poultry business but it has not yet decided how to raise the funds.

Afgri has been trading under a cautionary since May 15.

Louis Wolthers, the chief executive of the products division, said yesterday that the primary reason was that Afgri was considering spinning off its poultry and animal feeds business in a separate listing.

A secondary goal, he said, was the possibility of raising funds for the capital expenditure programme by issuing new shares. The alternative would be to take on debt to do it.

He said the company, whose activities include farmer services, grain storage and trading, intended to spend the funds over 12 to 18 months. The investment would double hatchery and abattoir capacity.

If the cautionary was renewed in about three weeks, Wolthers said, it would indicate that Afgri had become more serious about the listing option.

Source: Business Report

5m Editor