Joint press statement from AFGRI and AgriGroupe

AgriGroupe completes acquisition of AFGRI
AFGRI to delist and go private

31 March 2014 – Centurion, AFGRI Limited (“AFGRI”), a leading South African agricultural services and foods group, and AgriGroupe are pleased to announce the conclusion of the privatisation transaction and the start of a new chapter for AFGRI as a private company.

AgriGroupe Investments will be the majority shareholder in AFGRI, holding 60% through an offshore structure, with the remaining 40% held by South African shareholders including the Public Investment Corporation (PIC), the Black Empowerment consortium Bafepi Agri (Pty) (Ltd) and AFGRI management. “AgriGroupe celebrates the consummation of the acquisition of AFGRI and looks forward to sustaining the company’s role as a preeminent agricultural services player in South Africa. We will support management’s strategic vision for African food security through development of critical supply chain infrastructure, logistics solutions and financial services for both smallholding and commercial farmers in Africa. AgriGroupe is determined to maintain AFGRI’s commitment to farmers, employees and communities in South Africa, and to participating in the ongoing consolidation of the sector” said AgriGroupe’s Michael Wilkerson.

“Investors in AgriGroupe will benefit from AFGRI’s strong cash-flow generative grain management business, the largest John Deere franchise on the continent, long-term growth into Africa (which potential has been demonstrated by AFGRI’s successful recent entries into attractive growth markets including Congo Brazzaville, Nigeria, Uganda, Zambia and Zimbabwe), and a ‘hidden gem’ financial services business poised for expansion in offering credit, insurance and trade finance solutions to an increasingly broad set of agricultural and corporate clients” Wilkerson concluded.

“Fairfax, as the largest investor in AgriGroupe Investments, is pleased to make its first investment in South Africa. We are aligned with the strategic vision of AFGRI through our common goal to profitably support food security and stimulate the agricultural sector in Africa” said Prem Watsa, Chairman and CEO of Fairfax Financial Holdings. Fairfax, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Fairfax is based in Toronto, Canada and has been under present management since September 1985.

“For AFGRI it is an exciting evolution into the next 90 years. The collaboration with AgriGroupe, Fairfax and the PIC provides an opportunity to expand across Africa and to drive forward our vision of food security for Africa where we can make a meaningful contribution,” said Chris Venter, CEO of AFGRI.

Venter reiterated that current services and support structures to farming clients will remain unchanged. “We will continue to support, finance and provide technical services, products and storage solutions to our clients to the same standard as in the past. The transaction provides AFGRI with the necessary tools to expand our service offering into Africa, which AFGRI has identified as the largest growth prospect. Our base in South Africa is our history and
legacy and we are always mindful of that,” he concluded.

AFGRI will delist from the Main Board of the JSE on 1 April 2014. Additional information on AFGRI’s business, including its 2013 Annual Report and investor presentations, can be found at

Issued for: AFGRI Limited and AgriGroupe
Contact: Chris Venter, Chief Executive Officer (CEO)
Tel: 011-063-2007
Email: chris.venter@
Account: Keyter Rech Investor Solutions
Contact: Vanessa Rech or Lynne van der Schyff
Tel: 011-447-8656 or 083-307-5600 or 011-447-2993 or 082-920-4395