KAL Group sells Agriplas and property for R222.5m

KAL Group Limited, through its subsidiary Agrimark Operations Limited, has entered into agreements to dispose of Agriplas Proprietary Limited and an immovable property for a combined R222.5 million. The Agriplas disposal, involving the sale of Agriplas's equity to Agriplas Holdings Proprietary Limited (owned by Sana Partners Fund 2), is valued at R155 million, subject to working capital adjustments. Additionally, the property disposal, selling Erf 13562 Bellville to Agriplas, is for R67.5 million, inclusive of VAT.

For the six months ended 31 March 2025, Agriplas reported a net asset value of R71,771,345 and an attributable profit after tax of R7,761,936. The property had a net asset value of R15,502,105 and an attributable profit after tax of R401,353 for the same period. The proceeds from these disposals will reduce the group's bank funding, strengthen its balance sheet for future investments, and potentially improve dividend yields.

The transactions are subject to several suspensive conditions, including Competition Commission approval by 31 January 2026 and board authorisations. The Agriplas sale agreement also includes a two-year non-compete clause for the sellers within relevant magisterial districts.