Afrifresh takes over Ariston

horticultural company, having acquired Emvest’s shareholding at the beginning of this year.
Shareholders followed 78,6 percent of their rights during the cash call floated to raise US$8 million for recapitalisation and settling of expensive debt.
A total of 8,8 million new renounceable ordinary shares had been issued to shareholders and these have already been listed on the Zimbabwe Stock Exchange.
Shareholders paid US$0,009 per share and the shares were issued on the basis of two ordinary shares for every one such share already held in the company.
Company secretary Ms Faith Musinga said regulatory approval had been received from all the relevant parties.
“Ariston Holdings Limited has received all the requisite regulatory approvals from the exchange control division of the Reserve Bank of Zimbabwe, Minister of Youth Development, Indigenisation and Empowerment, the Zimbabwe Stock Exchange and the Securities Commission of Zimbabwe,” she said.
The company has projected US$4,2 million profit in the fifth year after the US$8 million capital injection the firm raised through the rights offer.
The company revealed the target in a statement last month after bowing to a Securities Commission of Zimbabwe’s directive for additional information on its capital-raising initiative.
SECZ had directed Ariston to provide more details on the underwriter, Afrifresh, the dilutive impact of the rights offer, maturity profile of its debt, financial projections and breakdown of capital projects.
According to the statement, Ariston has targeted US$4 million profit in five years, before tax and adjustment for biological assets.
The firm is targeting profits of US$463 000 this year, US$2 million next year, US$3,6 million in 2014 and US$3,8 million 2016.
Ariston sees its debt at US$1,3 million this year and at a constant US$3,1 million in the four years to September 2016. Of these liabilities US$500 000 matures in less than a month, US$1,3 million in three months, US$1,2 million in a year and US$4,3 million has to be repaid over a period of five years.
After a capital injection of US$8 million, raised from the cash call, the company projects finance costs at US$631 000 this year and to remain flat at                                          US$505 000 in the fours years to 2016.
The firm intends to undertake a US$2 million mechanisation programme to cut on high fixed costs for optimal profitability.
And US$3 million, from the rights offer proceeds, will be used to retire expensive debt, pay off liabilities and refinance the remaining interest bearing debt.
Another US$3 million will be invested in vegetable concern Favco to enhance its trading performance, as significant value would be created in this unit.
Afrifresh is an agriculture specialist company, running 22 irrigated farms with a land area of 20 000 hectares spread over South Africa.
The group’s activities span farming, packaging, technical assurance, quality control, marketing, exporting and logistics. The company is one of the largest fruit producers/exporters in South Africa.