Capespan begins vetting prospective partners

03 Dec 1999 - by Staff reporter

Evaluation of assets is first step

CAPESPAN, THE South African fruit marketing giant, has appointed HSBC Investment Services Africa, a subsidiary of the worldwide investment and security powerhouse, to assist with the vetting of prospective partners for
its recently-announced 49% stakeholding.
HSBC was involved in the privatisation of Transnet and the role of black empowerment in the organisation, and also advises the government on privatisation issues.
But before vetting of new partners gets underway, HSBC is undertaking a total evaluation of Capespan's logistical assets worth well over R600-million and has been given an end of July 2000 deadline to report back on the overall brief.
At stake is a minority shareholding in what Capespan's general manager, logistics, Dr Dawie Ferreira, describes as a leaner and trimmer R600 billion a year organisation.
The company's three fruit terminals, International Harbour Services in Cape Town, Durban Export Terminal and Port Elizabeth Export Terminal, have an insured value of R272-million, R280-million and R57-million respectively.
Capespan also owns 60% of CSS Logistics and has a 50% stake in Marven Stevedores.
Dr Ferreira told FTW that CSS Logistics was being restructured and could ultimately become a division of the new order, focusing on ship's agency and clearing and forwarding - part of the bigger picture.
As to whether Capespan might seek a larger slice of CSS Logistics - other stakeholders include Boeresake, Stellenbosch Farmer's Winery and KWV - he said: The option is probably there, it's a question of us having to approach other shareholders but this has not been discussed yet.
Capespan is known to be seeking partners with like-minded business interests; refrigeration, transportation, shipping and so on, who will be able to add value and broaden the business.
As to how much they will be required to invest, Dr Ferreira told FTW: That is negotiable. We are prepared to part with a significant percentage of shareholding but at the end of the day it boils down to numbers and figures.
On whether non-South African interests might be in the running, he said that while these would be considered, Capespan would give preference to South African players.
In the end this is all about South African competitiveness. Export agents are fighting one another within the country but the true fight is in the international market.
That is where we have to compete for our place in the sun against Argentina, Chile, Australia, New Zealand and others.
Dr Ferreira said he believed it important for exporters to understand that as the industry matured in terms of its positioning in the free market system, alliances should become necessary in order to form a stronger arm for negotiating in overseas markets - as had been the case in Israel, Spain and other countries.
South Africa is still two years down the line in this regard but there are no short cuts.
CSS Logistics m.d. Mike Walwyn told FTW the company had 30-odd shareholders, some of whom were no longer involved in international trade, and that they would probably therefore not be averse to disposing of their stake.
By Ray Smuts