Afgri disposes of Lowveld branches

The retail branches currently supply agricultural related products and inputs to farmers.

The rationale for the transaction is to dispose of the retail branches situated in the non-grain producing geographic areas of Afgri, in line with the company's strategy to exit retail businesses which are not part of its identified grain value chain or core business.

Afgri is assured that the management philosophy adopted by MGK will be in the best interest of the farmers who remain active in the geographic areas in which these retail stores are situated, it said.

Afgri's remaining retail business will be aligned with the grain value chain.

The supply of Afgri's remaining products and services to the farmers within the area covered by the transaction will be unaffected by the transaction.

The retail outlets to be sold are Brits, Thabazimbi, Vaalwater, Marble Hall, Groblersdal, Burgersfort, Hoedspruit, Nelspruit, Barberton, Malelane and Komatipoort.

The purchase consideration payable by MGK for the Afgri retail branches in terms of the agreement is R47,5 million plus the value of the stock in trade which is approximately R62,5 million.

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