Zeder Investments Opportunity rocks
Zeder Investments, the agri-business holding company which owns 27% of Pioneer Foods, is waxing bullish about further acquisitions in the food sector, surprisingly. Surprisingly, because the businesses it currently holds have seen their share value drop sharply as punters head for less cyclical sectors. Zeder’s Pioneer stake, for example, was valued at R7.66bn last February: it’s worth R4.92bn now. And similarly for other businesses, like Quantum Foods. This has not been great, it is true, with Zeder’s own valuation, whose the sum-of-the-parts (SOTP) value per share, typically used to evaluate conglomerates, has declined from R6.23 last October to R5.79 now. But Zeder reckon this state of affairs means that across the sector food businesses are now attractively priced for acquisition, so they’re looking around. In their own portfolio, they’re looking for opportunities to dispose of underperforming assets and unbundle underperforming businesses.
Comment: Perhaps a good time to get on board. People are always going to need to eat, after all.