UAC of Nigeria PLC has agreed to sell its 73.29% shareholding in Livestock Feeds PLC to Sunbeth Treenuts and Sesame Limited, in a deal valued at ₦19.5 billion in cash.
The transaction is subject to regulatory approvals.
In a notice on NGX, the price works out to ₦8.85 per Livestock Feeds share, payable to UAC upon completion.
UAC became the majority shareholder in 2013. Livestock Feeds has since grown into a feed business of national scale, with production capacity and a distribution network serving farmers across the country.
UAC’s Group Managing Director, Fola Aiyesimoju, said revenues had grown fivefold and profitability eighteenfold under its ownership.
He added that Sunbeth intends to work with the company’s management and employees on its next phase of expansion.
Sunbeth describes itself as an African agribusiness group active in agricultural origination, supply chain management, warehousing, trading and processing. It says the acquisition is a step toward becoming a more integrated agro-industrial platform, pairing its sourcing networks with Livestock Feeds’ manufacturing footprint, brands and nationwide distribution.
Jeroen de Ruijter, Chief Financial Officer of Sunbeth Agro HoldCo, said the deal reflects confidence in Nigeria’s agricultural sector.
He said Sunbeth’s immediate priority is to work with the existing management team and employees to strengthen the business and improve supply-chain efficiency.
Livestock Feeds was established by Pfizer in 1963 and listed on the Nigerian Stock Exchange in 1978. It manufactures and distributes animal feed and feed concentrates for poultry, aquaculture and livestock farmers, from plants in Ikeja, Aba and Kano.
UAC, which has operated in Nigeria for more than a century, has interests in packaged food and beverages, paints, animal feeds and other edibles, quick service restaurants, logistics and real estate.
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