Canola crop used for making cooking oil. Zeder Investments subsidiary Agricol develops and markets canola seed varieties in South Africa.
Image: Supplied
Zeder Investments announced on Thursday that it intends to distribute a significant portion of the Zaad disposal consideration of more than R1 billion to shareholders.
For the financial year ending February 28, 2026, following dividends received from Pome Investments, a special dividend of 7 cents per share was declared from income reserves.
Zeder's dividend policy states that dividends will be paid conditional on it having sufficient cash reserves to fund its operations and invest in growth plans for its investees.
The investment company's directors confirmed that it had entered into a sale agreement to dispose of Zaad, excluding some assets, on January 31 of this year. The investment in Zaad was valued at R1,094 billion, comprising the disposal value of R1,03bn plus R65 million anticipated to be received by Zeder from investment proceeds realised from the disposal of the other “Excluded Assets”.
After the disposal is implemented, Zeder will continue to own the current 48.6% interest held in May Seed, albeit indirectly via a 97.19% interest held in Zaad International (Mauritius). Zaad Holdings was Zeder’s agricultural seed and agribusiness platform.
Zeder's directors stated that while it intends to distribute most of the disposal consideration to shareholders, it would be prudent to hold back an appropriate portion of the disposal amount for the time being.
“The Zeder board is considering various options available to it in terms of Zaad International in order to further maximise wealth for its shareholders,” said the directors.
Zeder's net asset value per share (NAVPS) was R1.50 at February 28, representing a decrease of 15.3% (or 27 cents per share) compared to the NAVPS of R1.77 at the same time a year earlier. The decrease from the prior year was mainly due to the downward adjustment in the valuation of Zaad, based on the pending disposal transaction.
On the JSE, the share price gained 1.55% to R1.31 on Thursday afternoon, which is marginally lower than R1.40 a year before.
The loss before taxation from continued operations per Zeder's consolidated income statement was R23m compared to a profit of R37m in the previous year.
No ordinary or special dividends were paid during the financial year ending February 28, 2026. The year before, shareholders had received a special dividend of 61 cents a share.
“Zeder's objective remains to maximise long-term wealth for its shareholders,” said its directors. Zeder has been streamlining its portfolio since 2023, and most of its mature investments have been sold.
Johann le Roux stepped down as Zeder CEO and financial director effective February 28, 2026. He remains on the board as a non-executive director and a member of the executive committee.
Dries Mellet had been appointed as financial director and acting CEO effective March 1, 2026.
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