Dale Capital (SEM:DCPL), a private equity investment holding company that was the first foreign business listed on the Stock Exchange in Mauritius (SEM) in 2007, has completed its inward listing on the ZAR X stock exchange.
This listing will enable South Africans to invest in a growing group with an attractive return in a tax-effective jurisdiction.
The group identified the Mauritian food sector as a niche market after research revealed that as much as 70% of all food is imported into Mauritius. It has a strategy of becoming a niche market leader in the food, beverage, and food security sector in Mauritius.
Its investment into the Mauritius seafood and ocean economy has already placed Dale amongst the leaders in the sector. The entities it has invested in include the well-known Bella Amigo Group and St. Felix Seafood.
Another example of its niche market leadership is the growth in the Dale Agriculture business which has targeted the local breeding of sheep and goats.
“Three years ago, the group commenced with 137 animals and has now exceeded the December 2019 target of 2 000, making it the largest breeder on the island. Now, it wants to reach 5 000 within three years and 10 000 within the next seven years,” says Norman Noland, founder and CEO of Dale Capital.
Dale is in the process of branding its agriculture and food business under the St. Felix brand. Additionally, it has entered into a strategic partnership with the St. Felix Sugar Estate which owns approximately 3 200 hectares of land in the south of the island providing it with ample scope for expansion. In partnership with Dale, St. Felix plans to become the largest agricultural food operation in the south of the island. The estate is well positioned, close to the airport, and with the planned highway from the airport announced by Government, the location is excellent in terms of logistics.
Mauritius is a strong financial hub in Africa and provides investors with multi-currency investment opportunities. To this end, the inward listing is designed to attract South African investors who not only want to invest in this sector but also have exposure to the Mauritian Rupee, one of the most stable currencies globally.
The food businesses of Dale are now entering an exciting period of growth over the next two years but need capital to fund this growth.
According to Noland, Dale wishes to raise $2 million (approximately R30 million post the listing.
“By enabling participation for South African investors through this inward listing, we are diversifying the group’s capital base, improving liquidity for existing shareholders, and providing a diversified investment spread for investors as a result of the returns from these opportunities.
Of course, we do not want to take things away from South Africa. Instead, it is about using South African expertise to grow the sector in Mauritius. In turn, it will not be inconceivable for Mauritius to start exporting seafood to South Africa. There are many synergies to benefit from especially when it comes to private enterprise. As such, South Africa will be an important partner in this journey.”
“I am proud to say that we have become the first inward listing on ZAR X. This reflects our ongoing commitment to being innovative in everything we do. The ZAR X instant settlement software is a world beater and they have delivered the quick approval turnaround we needed to make this inward listing a success,” says Noland.
Graeme Wellsted, co-founder of ZAR X said that this is an important listing for the exchange.
“With the local economy under pressure, investors are looking to get a currency hedge elsewhere. This listing gives South Africans a good opportunity for diversification and lets them tap into new markets very easily. We anticipate this inward listing will trigger several more as companies start looking at more innovative ways of delivering shareholder value. Working with Norman Noland and his team has been a smooth process and we are equally excited about the opportunities this will unlock for their business,” says Wellsted.
The Appointed Advisor that introduced the listing is Arbor Capital Sponsors.
