Africa-Press – Eswatini. Inala Capital Limited has announced its intention of growing its portfolio of equity interests in food and agri investments.
The company, through a cautionary and transaction announcement published in the Eswatini Stock Exchange (ESE), informed its shareholders that this intention comes with the focus of its growth strategy in a regional consolidation play in the food, agriculture and agriculture-related sectors.
Inala Capital Limited’s principal objective is to carry on business as an investment holding company to provide investors with attractive long-term returns. Inala Capital focuses on investing in companies, which demonstrates strong fundamentals, and good growth prospects, whereas I
nala Capital believes it can add value.
The company primarily acquires equity stakes (both minority and majority stakes) in well-established agricultural and food businesses, governed by comprehensive shareholder agreements, along with Board representation. In the announcement, the company informed the shareholders that it has entered into negotiations, which, if successfully concluded, would result in; the acquisition of all the shares held by Greystone Partners Limited (Greystone Partners), an investment holding company listed on the ESE and invested in the FMCG, retail, financial services and other sectors, in Alliance Foods (Pty) Ltd (Alliance Foods), which operates the business of quick service fast food outlets in Eswatini.
Inala Capital stated that as payment for the Alliance Foods stake, the disposal by the company by way of a share swap of; a minority stake in General Africa Foods Eswatini Proprietary Limited offering fresh and frozen meat products and other grocery items to the mass consumer market in Eswatini, to Greystone Partners. The negotiations, if successful, would also result in the acquisition of a minority stake held by Greystone Partners in Ngwane Mills (Pty) Ltd, a substantial animal feed and integrated poultry manufacturer in Eswatini.
The company intends to, furthermore, embark on a capital raising exercise with the goal of raising additional equity funding from current and potential new investors through an issue for cash, in accordance with the ESE listings requirements, to enable additional investment acquisitions.
According to the company, these transactions may have a material effect on the price of the company’s securities. “Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made,” read the announcement.
As of yesterday, the company’s market capitalisation stood at E107 991 000 and shares at Inala Capital was E1.50 per share. In terms of share prices (cents per share), compared on a yearly basis, Inala Capital Ltd gained the most on a yearly basis at 7.14 per cent, followed by Greystone Partners Ltd at 6.25 per cent, then Nedbank Eswatini Ltd at 6.23 per cent and Swazi Empowerment Limited (SEL) at 2.70 per cent.
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