21 Jul 11 AVI sells off Denny Mushrooms
Food group AVI is selling 100% of the issued share capital of and AVI’s shareholder claims against Denny Mushrooms to Blue Falcon 134 Trading. Blue Falcon’s shareholders include RMB Ventures Six, an indirect subsidiary of FirstRand, which holds a 49.9% interest in Denny, and Denny’s executive management team.
Denny is the leading producer of fresh, canned and value added mushroom products in South Africa, with a market share exceeding 50%.
“While Denny is a sound business with the leading national brand in the fresh and canned mushroom categories, the importance of branding in the “fresh to market” produce segment in general and in the fresh mushroom segment in particular has declined over the past several years and this category is no longer strategically aligned to AVI’s growth ambitions,” the company said on Wednesday.
The effective date of the transaction is 1 July 2011.
The transaction is subject to the fulfilment of certain conditions precedent including the unconditional approval of the South African Competition Authorities. Details of the transaction would be communicated at the group’s year-end presentation to be held on 5 September, AVI noted.