Afgri Ltd. (AFR) rose the most in almost five years after AgriGroupe Holdings Pty. Ltd. said that it plans to acquire the South African handler of grain.
Afgri jumped as much as 15 percent, the steepest intraday gain since December 2008, and was trading up 14 percent at 6.64 rand at 10:42 a.m. in Johannesburg, valuing the company at about 2.49 billion rand ($246 million). Volume was more than double the three-month daily average.
Closely held AgriGroupe will make a cash offer of 7 rand a share for Centurion-based Afgri, excluding a 3.3-cent per-share dividend due to shareholders in November, and intends to terminate its stock exchange listing, the companies said in a statement on Sept. 27. Some of Afgri’s managers will hold a stake of about 5 percent in AgriGroupe and will abstain from voting in any shareholders’ meeting on the transaction, the companies said.
To contact the reporter on this story: Christopher Spillane in Johannesburg at email@example.com