Old Mutual Alternative Investments backs South African maize milling deal
The funding will facilitate Thebe Investment Corporation’s acquisition of a further 40% shareholding in Pride Milling.
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Hybrid Capital, a division of Old Mutual Alternative Investments, has provided a bespoke funding solution to Thebe Investment Corporation, a black-owned investment management company. The funding will facilitate Thebe’s acquisition of a further 40% shareholding in Pride Milling, one of the largest maize millers in South Africa.
This transaction will see Thebe, together with the existing shareholders, become the majority owner of Pride Milling.
Established in 2001, Pride Milling has developed from a small business into a sophisticated milling operation. The company’s products are not only a staple food for South Africans, but are also exported to various regions across the African continent.
Hashim Pohplonker, a senior investment associate for Hybrid Capital at OM Alternatives, says: “Our investment highlights the importance of private sector contributions to industries underpinning food security in South Africa. A material portion of our population is unsustainably food insecure. Through Thebe’s acquisition of Pride Milling, supported by Hybrid Capital’s funding, there will be enhancements to the food value chain, employment opportunities and, most importantly, to the availability of affordable, quality and nutritious staple foods for a broad segment of our population.”
Rapulane Mabelane, Thebe’s chief investment officer, comments: “Acquiring a majority stake in Pride Milling not only strengthens our position in the food and agriculture sector but also aligns with our core purpose of driving transformation, growing local industries and building the communities we serve. By partnering with OM Alternatives Hybrid Capital and the exceptional Pride Milling team, we are well-positioned to make a substantial and positive impact on food security. Our increased shareholding in Pride Milling will also provide employees of Pride Milling with a direct shareholding in the company and increase supply opportunities for small and women-owned farmers.”
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