UAC to sell Livestock Feeds control to Sunbeth for $15M
What's the deal? UAC of NigeriaDealroom has a profile for this one. Try Dealroom → has agreed to sell its 73.29% stake in Livestock FeedsDealroom has a profile for this one. Try Dealroom → to Sunbeth Global ConceptsDealroom has a profile for this one. Try Dealroom → for N19.5 billion (about $15 million) in cash. The sale, priced at N8.85 per share, transfers control of the national feed producer and remains subject to regulatory approvals.
What's the endgame? The deal is part of UAC's portfolio rationalisation, converting a long-held controlling investment into cash it can redeploy across its remaining businesses.
Who's buying? Sunbeth is an African agribusiness group with operations across agricultural sourcing, supply chain management, warehousing, trading, and processing. It plans to pair its origination and processing capabilities with Livestock Feeds' manufacturing footprint, brands, and nationwide distribution.
UAC acquired Livestock Feeds in 2013 and grew it into a national-scale business. Group managing director Fola Aiyesimoju said revenues increased "5x and profitability increasing 18x" under its ownership.
What changes? Sunbeth will work with existing management and employees, targeting supply-chain efficiency and product quality. "Our immediate priority will be to work with the existing management team and employees to strengthen the business," said Jeroen de Ruijter, chief financial officer of Sunbeth Agro HoldCoDealroom has a profile for this one. Try Dealroom →.
What could go wrong? Completion hinges on regulatory and other conditions. For UAC, the strategic payoff depends on how effectively it redeploys the proceeds relative to the asset's carrying value.
The signal: The transaction reflects a broader push toward integrated African agribusiness platforms that combine local sourcing with domestic processing. For Sunbeth, de Ruijter said, the deal reflects "confidence in Nigeria's agricultural sector" and an ambition to build globally competitive enterprises from Africa.
Read more: proshare.co
Image credit: Christopher Hall
