UAC of Nigeria Plc (NGX: UACN) is set to sell its 73.29% shareholding in Livestock Feeds Plc (NGX: LIVESTOCK) for a cash consideration of ₦19.5 billion, representing ₦8.85 per share of Livestock Feeds Plc.
Also read; Tony Elumelu’s Heirs Energy Ltd acquires 6 million shares of Seplat Energy Plc
In a corporation action filing seen by Investogist, UACN said it has entered into an agreement sell its stake to Sunbeth Treenuts and Sesame Treenuts Limited, subject to regulatory approvals.
UAC of Nigeria Plc acquired Livestock Feeds Plc in 2013, and under UAC’s ownership, Livestock Feeds has grown into one of Nigeria’s leading animal feed manufacturers.
Speaking on the sell, Fola Aiyesimoju, Group Managing Director of UAC, said: “UAC has worked with the Company’s management to drive significant growth and expansion with revenues increasing 5x and profitability increasing 18x. Following the Transaction, Sunbeth is keen to
continue to work with Livestock Feeds’ management and employees to drive the next phase of the Company’s expansion, leveraging its rich heritage in the Nigerian agro-allied sector.”
Sunbeth is an African agribusiness group with capabilities spanning agricultural origination, supply chain management, warehousing, trading and processing. The acquisition of LSF represents an important step in Sunbeth’s continued evolution into a broader, integrated agro-industrial platform. The Transaction brings together Sunbeth’s deep experience at origin, extensive producer and sourcing networks, and growing processing capabilities with Livestock Feed’s established manufacturing footprint, technical expertise, brands and nationwide distribution network.
Sunbeth will work with Livestock Feed’s management and employees to build on the Company’s strong heritage while supporting continued improvements in operational efficiency, supply-chain resilience, product quality and sustainable growth.
Jeroen de Ruijter, Chief Financial Officer of Sunbeth Agro HoldCo, said:
“This acquisition represents an important milestone in Sunbeth’s long-term strategy to build a more integrated African agribusiness platform. Our business has developed deep capabilities at origin, working across agricultural supply chains and building strong relationships with producers, customers, and global partners. We believe the next phase of our growth is about combining those strengths with world-class processing and manufacturing capabilities closer to the markets we serve.
“Livestock Feeds is a business with a remarkable heritage, established brands, experienced people and an important role in Nigeria’s agricultural economy. We see significant opportunity to build on these foundations. Our immediate priority will be to work with the existing management team and employees to strengthen the business, improve supply-chain efficiency and support its next phase of growth.
“For Sunbeth, this transaction is about much more than acquiring an asset. It reflects our confidence in Nigeria’s agricultural sector and our ambition to continue investing in businesses and capabilities that can strengthen African food systems, create value locally, and build globally competitive agricultural enterprises from Africa.”
About UAC of Nigeria PLC
UAC is a house of scalable quality brands, with subsidiary and associate companies operating in the Packaged Food and Beverages, Paints, Animal Feeds and Other Edibles, Quick Service Restaurants, Logistics and Real Estate segments. UAC has played a prominent role in Nigeria’s development for over a century. The company is focused on building its businesses into leaders in their chosen segments.
About Sunbeth Treenuts and Sesame Limited
Sunbeth Treenuts and Sesame Limited is part of Sunbeth’s growing African agribusiness platform, with capabilities across agricultural origination, producer networks, warehousing, supply-chain management, trading and processing.
Sunbeth is pursuing a long-term strategy of expanding its participation across the agricultural value chain, combining its strength at origin with investments in processing, manufacturing and other valueadded capabilities. With deep roots in African agricultural markets and relationships across international markets, Sunbeth’s ambition is to build resilient, competitive agricultural businesses that connect African production with growing domestic and global demand.
About Livestock Feeds PLC
Livestock Feeds PLC is a pioneer of animal feed manufacturing in Nigeria, with a history dating back to 1963, when it was established by Pfizer. The company was listed on the Nigerian Stock Exchange in 1978, and UAC became its majority shareholder in 2013. Today, Livestock Feeds is one of Nigeria’s leading manufacturers and distributors of animal feed and feed concentrates, serving poultry, aquaculture and livestock farmers through a nationwide distribution network from plants in Ikeja, Aba and Kano.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
