THE feathers are still flying at Quantum Foods, the Paarl-based agri-business, as another new strategic shareholder enters the coop.
CBN reported last year that a battle royal got underway once PSG-aligned Zeder Investments sold its 32% stake in Quantum to Country Bird Holdings (CBH). Quantum plays in the poultry, eggs and animal feeds segment – which explains why CBH, a massive poultry producer, was keen to snatch up a strategic stake in Quantum.
CBH’s advance was, however, not welcomed by all – and in particular Quantum’s senior management and SA’s biggest poultry producer Astral Foods.
Quantum management, IM would think, might have been worried about their future under a new dominant shareholder – especially after being left to their own devices by Zeder for so long.
Astral arguably had a bigger problem with CBH. Quantum supplied Astral with chicks in the key Western Cape market, and if CBH decided to end that arrangement it would be costly. In fact, Astral estimated it might cost as much as R900 million to set up its own production facility in the Western Cape.
So when international private equity player Silverlands suddenly emerged as significant shareholders – with a stake roughly the same size as CBH – Quantum’s management and Astral also weighed in. Astral’s management increased their shareholding in the business markedly, while Astral bought a 5% stake, which it has now built up to around 10%.
While there was no official arrangement between Silverlands, Quantum management and Astral, it does seem that CBH was stymied in its efforts to buy more shares, gain a board seat and exert any influence over Quantum’s business.
Not surprisingly CBH recently sold out most of its Quantum stake, a move made slightly less bitter by the fact that the group made a very nice profit on selling their shares. CBH now retains a 6.45% stake in Quantum.
But a new large shareholder has now emerged in the form of Braemar Trading. Braemar appears to be a nominee company, but there has been no further detail released about the new shareholder. The mysterious Braemar now holds a 30% stake in Quantum.
If CBH – possibly more interested in other poultry opportunities – were to sell its remaining 6.45% stake to Braemar things could get really interesting at Quantum. If Braemar cosies up to Silverlands then it could be even more interesting. Watch this space!
