BUSINESS DAY: Mandatory sale of Bank of Athens adds another string to AFGRI’s bow

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Bank of Athens’ parent, the National Bank of Greece, was compelled to sell its 99.81% interest in the bank as part of an agreement with the European Stability Mechanism

The South African Bank of Athens’ parent company was forced to offload its South African subsidiary, which had R1.5bn in deposits and R2.3bn in assets at the end of 2016, in terms of European Central Bank (ECB) conditions.

Afgri has snapped up the Greek bank’s interest, but declines to say at what price.

The agricultural services company is unwilling to divulge its plans for Bank of Athens, which Reserve Bank records show obtained the bulk of its deposits from the private non-financial corporate sector and households, while its two largest asset groups comprise residential mortgages and commercial and other mortgage advances.

This differs from Afgri’s R12bn debtors’ book, built up through Unigro Farmer Lending, Unigro Insurance Brokers and GroCapital Financial Services on behalf of the Land Bank. The Land Bank provides financial services to agribusiness.

Afgri CEO Chris Venter could not comment on how Bank of Athens’ clients complemented Afgri’s offering before the deal won regulatory approval.

“We … require all approvals. Afgri views this as a change in the holding structure, which will provide benefits to our clients.”

Afgri said on Tuesday that it had applied for regulatory approvals from the Reserve Bank, the minister of finance and the competition authorities.

Bank of Athens’ parent, the National Bank of Greece, was compelled to sell its 99.81% interest in the bank as part of an agreement with the European Stability Mechanism, which injected €2.71bn in capital in December 2015 after the ECB found a €4.6bn capital shortfall at the bank.

The ECB required National Bank of Greece to “dispose of noncore assets outside Greece” as a condition of the bail-out.

The rest of the shortfall was covered through “private means” and bolstered by the bank’s positive third-quarter results for 2015.

The National Bank of Greece is regarded as one of that country’s four systemically important financial institutions.

It expects the deal with Afgri to close within the second half of 2017 and enhance its liquidity by about €55m.

Venter said Afgri was impressed with the strides Bank of Athens had made in specialised offerings, especially in “the application of technology and innovative solutions”.

“Afgri, through its 94-year history, prides itself on knowing agriculture and agricultural cycles … [and is able] to use this knowledge in affording clients access to finance that will assist them through their production cycle,” said Venter.

“This acquisition provides an additional retail and alliance banking platform to current and prospective Afgri customers where deposit-taking and lending is possible.”

BUSINESS REPORT: AFGRI Holdings buys SA Bank of Athens

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Agricultural services and food processing group Afgri Holdings announced on Tuesday that it had bought National Bank of Greece Group’s (NBG’s) 99.81 percent stake in the South African Bank of Athens (Saba) for an undisclosed amount.

NGB, the second largest Greek bank by total assets, said in a statement that the deal was part of the bank’s restructuring plan agreed with banking regulators to boost its capital position.

It said the deal, expected to close in the second semester of this year, was subject to various conditions including regulatory approvals from the South African Reserve Bank, Finance Minister Pravin Gordhan, the Competition Commission and the Competition Tribunal.

Afgri said it was liaising with the Reserve Bank and preparing the prescribed applications for the regulatory approvals.

“Afgri values the support of clients, depositors and banking partners of the Saba and commits to continue to provide the service excellence they are accustomed to,” said Afgri chief executive Chris Venter.

Afgri said its indirect controlling shareholder, Fairfax Africa Holdings Corporation, supported the transaction.

Saba, established in 1947, provides banking services to medium-sized local businesses. It offers comprehensive traditional business banking such as lending, transaction banking, treasury and foreign exchange. Afgri, on the other hand, is an agricultural, financial services and food processing company operating in South Africa and 14 other countries in Africa.

Afgri said Saba was also focused on the development of niche transactional banking.

“We’re impressed with the strides Saba has made in specialised banking, especially as these pertain to the application of technology and innovative solutions,” said Venter.

He said the acquisition of Saba provided an additional retail and alliance banking platform to current and prospective Afgri customers where deposit taking and lending was possible “and in this way enables Afgri to continue with its focus of innovation and an enabler to food security”.

The deal follows NBG’s sale late last year of its Bulgarian subsidiary, United Bulgarian Bank, to Belgian bank KBC Group for e610 million. At the time, NBG said the transaction would strengthen its capital and liquidity position, allowing for the redeployment of resources to support the Greek bank.

NBG chairman Louka Katseli said in the 2015 annual report that the group was a pillar of stability and certainty for the Greek economy.

“The main intention of the NBG Group is to maintain its leadership profile and play an active role in supporting investments that can foster a resurgence in economic activity,” said Katseli.

BUSINESS DAY: AFGRI pursues Bank of Athens’ SA stake

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Afgri CEO Chris Venter says the 94-year-old business was constantly evolving and looking at ways to better service its customers

Afgri is seeking to acquire the South African portion of Bank of Athens. The deal would give Afgri, which has long been a financier of farmers in partnership with the Land Bank, a banking licence.

Afgri CEO Chris Venter said the 94-year-old business was constantly evolving and looking at ways to better service its customers. The group has a partnership with the Land Bank called Unigro, which offers loans and crop insurance to farmers. Afgri also has a subsidiary called GroCapital Financial Services, whose services include trading futures contracts for farmers.

“Since the early 2000s we have aggressively expanded our financial services offering. We manage a R12bn debtors’ book through Unigro and GroCapital. The move reiterates the core focus of the group which is to ensure food security across the continent. We will be better placed to help our customer base grow their business. The management team at the bank will be staying,” said Venter. Afgri will gain the right to accept deposits, something its existing relationship with the Land Bank does not provide.

Venter would not disclose the value of the deal. “That’s one of the benefits of being unlisted.”

Afgri delisted from the JSE in April 2014. Its shareholders include Fairfax, the Public Investment Corporation, empowerment consortium Bafepi Agri and management.

Venter said the deal had the backing of the group’s shareholders. “We still need the necessary approvals from the South African Reserve Bank and all relevant authorities. I would hope the deal would be done later this year, but it is difficult to provide a timeline. This is a journey about which we are excited. We hope we can conclude the deal as soon as possible.”

The South African Bank of Athens provides business banking services to medium-sized local businesses, as well as niche transactional banking to the broader market.

BUSINESS DAY: AFGRI seeks Reserve Bank’s permission to buy Bank of Athens SA

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Afgri says the deal is not expected to change the group’s partnership with the Land Bank, called Unigro, which offers loans and crop insurance to farmers

Former farmers co-op Afgri is seeking to acquire the South African portion of Bank of Athens for an undisclosed amount.

The deal would give Afgri, which has long been a financier of farmers in partnership with the Land Bank, a banking licence.

Afgri is seeking permission from the South African Reserve Bank to acquire all but 0.09% of Bank of Athens SA from its holding company National Bank of Greece Group.

Vanessa Rech, of investor relations company Keyter Rech, said the deal was not expected to change the group’s partnership with the Land Bank, called Unigro, which offers loans and crop insurance to farmers. Afgri also has a subsidiary called GroCapital Financial Services, whose services include trading futures contracts for farmers.

“All we envisage at this stage for Bank of Athens is a change of holding company. It won’t make a difference to its customers or ours,” Rech said.

Something Afgri will gain from the deal is the right to accept deposits, something its existing relationship with the Land Bank does not provide.

Historically known as OTK — the Afrikaans acronym for Eastern Transvaal Co-operative — Afgri was listed on the JSE until 2013 when it bought out minority investors in a deal financed by Canadian private equity firm Fairfax, the Public Investment Corporation, an empowerment partner and management.

Afgri’s acquisition of Bank of Athens is supported by Fairfax, it was noted in Tuesday’s statement.

AFGRI acquires stake in bank and broadens financial offering

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AFGRI Holdings Proprietary Limited (“AFGRI”), the leading agricultural services and food processing company is pleased to announce the potential acquisition of the National Bank of Greece Group’s stake in the South African Bank of Athens Limited (“SABA”), corresponding to 99.81% of the issued share capital (the ‘’Transaction”) of SABA .

The Transaction is subject to customary closing conditions, including, regulatory approvals from the South African Reserve Bank (“SARB”), the South African Minister of Finance as well as the South-African Competition Authorities. AFGRI is liaising with SARB in this regard and is in the process of preparing the prescribed applications for the regulatory approvals under the guidance of appointed advisors.

“AFGRI values the support of clients, depositors and banking partners of the SABA and commits to continue to provide the service excellence they are accustomed to,” said AFGRI CEO, Chris Venter. He went on to say that acquisition would be a further enabler to both AFGRI and SABA customers.

Fairfax Africa Holdings Corporation, the indirect controlling shareholder of AFGRI, has provided its support for the proposed transaction.

SABA was established and has been operational in South Africa since 1947. It offers comprehensive traditional business banking such as lending, transaction banking, treasury and foreign exchange. It is further known for its focus on the development of market leading niche transactional banking offerings in partnership with businesses.

“We are impressed with the strides SABA has made in specialised banking offerings especially as these pertain to the application of technology and innovative solutions,” indicated Venter.

Venter concluded by indicating that the acquisition provides an additional retail and alliance banking platform to current and prospective AFGRI customers where deposit taking and lending is possible and in this way enables AFGRI to continue with its focus of innovation and an enabler to food security.

BUS BYWAY: Large South African Presence at Agritech Expo in April Indicates Strong Interest in Zambia’s Agri Sector

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Chisamba, Zambia, March 05, 2017 – “Zambia is an exciting market to explore, not just for South African suppliers to the agriculture sector, but also for South African farmers,” says Liam Beckett, commercial director for the upcoming Agritech Expo Zambia. The award-winning event is owned by the Zambia National Farmers Union (ZNFU) and returns to Chisamba for the fourth time this year from 27-29 April.

He adds, “In certain sectors the South African market has become saturated and many South African companies are looking to branch out across the border, in order to continue their business growth in Africa. In Zambia, there are approximately 400 registered commercial farming professionals, which represents a very lucrative potential market. The Zambian farming sector is also far more advanced than other neighbouring countries and farming methods are also similar to South Africa. Therefore, South African brands and products, such as implements and agro chemicals, are all applicable in Zambia.”

More international pavilions
Last year Agritech Expo Zambia drew a record-breaking attendance of 17 605 visitors. This year even more small-scale, emerging and commercial farmers are expected to descend on the GART research farm in the heart of Zambia’s agri-hub Chisamba, where the latest farming products and services will be showcased. The three-day expo will furthermore feature an even greater international presence with international pavilions from Germany, Zimbabwe, Czech Republic, the Netherlands, the UK and France already confirmed.

Says Liam Beckett, “Just judging from the big increase in international pavilions at Agritech Expo this year, the global interest in Zambia as an agri market is obvious. Already there is major international investment in the country at present as well as projects being planned and if a South African company wants to establish a footprint in Zambia, they need to make sure they grab this business development opportunity now before they miss out.”

The South African companies that have so far booked to exhibit or sponsor at Agritech Expo Zambia include AGRICO, Gallagher Power Fence SA Pty Ltd, Hydraform, Kempston Agri – Claas, Lindsay Africa, Neptun Boot, Organico, Senter 360, Teejet and ROFF. Many other suppliers have headquarters in South Africa, but they are exhibiting as the Zambian branch.

Liam adds, “For South African farmers, Zambia is of interest as there are many new technologies, agro chemicals and commercial farming methods that are available in Zambia that they can learn from. They can also explore renting land on a 99-year lease to expand on their existing South African operations.”

Agritech Expo Zambia will also offer free workshops again, as well as live machinery and product demonstrations and crop trials. New for this year will be specialised agri-sector industry zones and mowing and baling demonstrations.

Multi-award winning Agritech Expo
Agritech Expo Zambia recently won two coveted awards at the ROAR Organiser and Exhibitor Awards in Johannesburg which honour excellence in the exhibition and events industry on the continent. The awards were organised jointly by the Association of African Exhibition Organisers (AAXO) and the Exhibition & Event Association of Southern Africa (EXSA). Agritech Expo won for Best Trade & Consumer Exhibition +12000 sqm and for Distinction in Social Responsibility.

The expo also has an outreach programme at the local Golden Valley Basic School, where, with the assistance of numerous event sponsors, it is assisting the school with much needed infrastructure upgrades, equipment supplies and management of the school’s farm.

As in previous years, Agritech Expo enjoys extensive support from the agri industry with well-known suppliers AFGRI and John Deere returning as platinum sponsors again. Confirmed gold sponsors are Action Auto, Agricon, BHBW, Case Construction, Case Agriculture, Gourock and SARO.

Agritech Expo Zambia is organised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK. The event is owned by the Zambia National Farmers Union. Other well-known events by Spintelligent include Agritech Expo Tanzania and Agribusiness Congress East Africa.

Agritech Expo Zambia 2017:
Dates: 27-29 April 2017
Location: Gart Research Centre, Chisamba, Zambia

Contact Information:
Agritech Expo Zambia
Annemarie Roodbol
+27217003558
Contact via Email
www.agritech-expo.com

Vodacom Bulls change two for trip to Bloemfontein

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Vodacom Bulls coach Nollis Marais drafted in Jason Jenkins to replace injured Lood de Jager and swopped around Lizo Gqoboka and Pierre Schoeman in the Vodacom Bulls team that will take on theToyota Cheetahs in the second round of the 2017 Vodacom Super Rugby competition.

These are the only two changes to the starting side that dropped the result against the DHL Stormers in Cape Townlast weekend.

Lood de Jager’s unavailability due to concussion will see Jason Jenkins combining with RG Snyman at lock. The duowill have little difficulty in partnering up. They played together in sevenmatches in last year’s tournament and both scored tries when they last faced the Toyota Cheetahs in a 23-18 win at Loftus Versfeld.

Renaldo Bothma will fill the vacancy on the bench left by the promotion of Jenkins.

In an early rotational switch by Marais, Pierre Schoeman and Lizo Gqoboka swop around, with the Springbok tourist from lastyear starting and Schoeman, a try-scorer against the Stormers, coming off the bench.

Marais pulled no punches about the opening weekend in Cape Town.

“We were outplayed by a better team on the day. It was a very good reality check and lessons were learned. We need to show that we can learn from mistakes and improve on them,” Marais said.

“The Cheetahs will be hurting afterthat close loss to the Lions last weekend and will be motivated in what happened in our last match in Bloemfontein. I have no doubt that this group of Bulls players are good enough to be real contenders, but that belief will be tested by a side that refuses to give up or accept defeat. We have another massive challenge ahead of us, but I can honestly say that everyone in the squad is looking forward to this.”

Vodacom Bulls captain, Handré Pollard, scored 29 points against the Toyota Cheetahs the last time he faced them in Bloemfontein, but is adamant that everyone is on a clean slate this time around.

“What you achieved in the past means nothing if you don’t deliver your A-game every time, something myself and the team realised again last weekend in Cape Town. We need to produce come Saturday, with a performance that will do justice to the hard work done, but also to justify the support of our fans and the backing from our coaches. In short, we need to show that we are serious to win this competition,” Pollard insisted.

The team (with Super Rugby caps and points) is: Jesse Kriel (32, 10), Travis Ismaiel (18, 30), Burger Odendaal (19, 10), Dries Swanepoel (8, 10), Jamba Ulengo (11, 25), Handré Pollard (c; 26, 245), Rudy Paige (35, 0), Hanro Liebenberg (9, 15), Jacques Potgieter (57, 35), Nick de Jager (6, 5), RG Snyman (13, 10), JasonJenkins (14, 5), Trevor Nyakane (71, 15), Jaco Visagie (9, 0), Lizo Gqoboka(12, 0). Replacment bench: Edgar Marutlulle (25, 20), Pierre Schoeman (10, 0), Jacobie Adriaanse (27, 0), Renaldo Bothma (18, 20), Ruan Steenkamp (1, 0), Piet van Zyl (69, 60), TianSchoeman (23, 75), Warrick Gelant (5, 5).

#CHEvBUL

Vodacom Bulls to partner with CHOC

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The Vodacom Bulls are pleased to announce their exciting partnership with the Childhood Cancer Foundation SA (CHOC) a day after International Childhood Cancer Day which was on 15 February.

The Vodacom Bulls and CHOC have worked together in the past but have solidified their relationship as the two organizations look to create awareness about childhood cancer.

“We will assist CHOC with creating mass awareness around their cause and brand, by getting involved with some of their events and opening up our resources and services to them. More importantly, the team and management are really looking forward to getting directly involved on a personal note with the kids from CHOC. These little warriors fight a brave battle every day, and I believe that this is an inspiration to anybody privileged enough to meet them,” said Shanil Mangaroo, Blue Bulls Company: Marketing, Media and Communication Manager.

CHOC was founded in 1979 when a group of parents, who’s children were suffering fromcancer, came together to form a non-profit organization that assists families that are dealing with childhood cancer and life threatening blood disorders, both emotionally and financially.

CHOC provides free accommodation to children and their caregivers in six provinces in South Africa as well as transport to and from hospitals. The foundation also assists with psycho-social support for families from diagnosis as well as the journey, practical support as well as sending volunteers to interact with the children in the pediatric oncology units.

Ina Schomper, Regional Manager of the Northern Region of CHOC, stated that they are excited to be partnering with the Vodacom Bulls on a more permanent basis.

“The Vodacom Bulls’ support of the CHOC Northern Region’s initiatives in the past assisted us with raising awareness for childhood cancer and life threatening blood disorders and I am very excited about entering this new chapter of our relationship,” said Schomper.

With the Vodacom Blue Bulls, an icon in the community, I believe this new partnership will provide CHOC with new opportunities to spread the very important message of early detection of childhood cancer that can positively influence the survival rate in South Africa. More visibility will also contribute to more interest in CHOC’s programmes and together we keep more than hope alive,” added Schomper.