Mergence acquires remaining PE stake in Lesotho trout farm
The investment sits in Mergence’s Lesotho Private Equity Fund.
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Mergence Investment Managers (Lesotho) has acquired the remaining 51% of the shares in Sanlei Premium Trout, an integrated aquaculture producer of Africa’s largest sushi-grade trout. The stake was sold to Mergence by the former co-investor, a private family capital fund.
The investment sits in Mergence’s Lesotho Private Equity Fund. The fund's main investor is the largest pension fund in Lesotho.
As a commercial-scale rainbow trout farm, Sanlei is located on the edge of the Katse Dam in the remote highlands of Lesotho, a site known for its deep, pristine waters and highly favourable environment for growing premium trout. Sanlei is the largest trout farming operation in Southern Africa and has farmed rainbow trout since 2018.
Sanlei has the licence and physical infrastructure capacity to supply the bulk of the South African rainbow trout market. In addition it has a fast-growing niche export market, currently focused on the US. Following successful trials, Sanlei has recently been appointed as a permanent supplier to one of the largest FMCG retailers in the US with a nationwide footprint of over 2,000 stores.
“Growth projections are to double the current trout production of 1,000 tonnes of trout per annum to 2,000 tonnes by 2030,” said Sanlei CEO Dewald Fourie.
Semoli Mokhanoi, managing director of Mergence Investment Managers (Lesotho), said that Mergence bought an initial stake in Sanlei in 2019. “Mergence is in the process of raising capital to deploy expansion and working capital to further scale up Sanlei’s operations to attract other potential customers, particularly further in the Far East as well as in the European Union,” he added.
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