Zeder announces Pioneer windfall


Zeder announces Pioneer windfall

Published Date: 2020-04-02 | Source: Stephen Gunnion | Author: Stephen Gunnion

Zeder announces Pioneer windfall

The special dividend is less than planned as the investment group is holding some of the sale proceeds back due to uncertain market conditions.

Zeder Investments plans to pay shareholders a special dividend of 230c per share after selling its stake in Pioneer Foods. The investment group says the payout is slightly lower than the 249-278c previously forecast as it wants to hold back some cash as protection against the potential impact of Covid-19 on its business.

Zeder agreed to sell its interest in Pioneer to PepsiCo for about R6.4 billion under the US food and beverage giant's takeover of the local group. The scheme of arrangement for the transaction became operative last week. It also used a portion of the proceeds to settle all its debt.

PepsiCo, which is listed on the US's NASDAQ, plans to use SA as a hub for expansion throughout Africa, while providing Pioneer with access to new markets and improving its ability to compete more effectively in Africa and beyond. Apart from Pepsi-Cola, it owns brands including Mountain Dew, 7UP, Nik Naks, Frito-Lay, Doritos, Simba, Quaker Oats and Tropicana Juice, amongst others. Pioneer's brands include Sasko bread and flour, Weet-Bix, ProNutro, Bokomo corn flakes, Liqui Fruit and White Star maize meal.

The last day to trade in Zeder's shares cum dividend is 21 April. Payment date is a week later.

Its shares closed 1.8% higher at R4.48 yesterday.

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