Wednesday, November 18, 2009

Futuregrowth pathfinder in new BEE agricultural deal

Targets for agricultural land reform moved a step closer today as South African Fruit Exporters (SAFE), one of South Africa‘s leading global fruit exporting and logistical services providers, announced a large empowerment transaction funded by Futuregrowth Asset Management.

The deal involves the sale of 50% of the equity from existing shareholders in SAFE to the United Farmers’ Fund Trust (UFF), a broad-based BEE trust with a focus on land reform and rural development.

A new joint venture will be formed together with SAFE and the UFF to be known as SAFE Farm Ventures.

James Howard, portfolio manager of Futuregrowth the main investor behind the UFF on this deal, said that the Futuregrowth Infrastructure Development Bond and the Development Equity Fund, on behalf of investors, had provided R25 million to fund the purchase of SAFE equity. “This transaction ticks all the blocks for institutional clients seeking to invest in the development of the country. The benefits of this particular deal include sustainable and profitable land reform with a guaranteed minimum return to meet the Funds' performance targets,” said Howard.

Read the full text of the press release from the HWB

Posted by HWB Communications, Cape Town's premier PR agency specialising in crisis communications & media relations in South Africa. Futuregrowth is a client of HWB.