Top Africa Fund Manager PIC Backs Chicken Producer With Loan
(Bloomberg) -- South Africa’s Public Investment Corp., the continent’s biggest fund manager, has backed Daybreak Foods Ltd. with a 250 million-rand ($14 million) loan to boost its operations and balance sheet.
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“The loan will inject much-needed working capital into the business to position us for growth,” Daybreak CEO Richard Manzini said by email. “The money will mainly be used for technology upgrades of the abattoirs and machines, and a water-treatment plant to increase the speed of processing the chickens.”
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The PIC bought Daybreak — which controls about 7% of the South African chicken market and employs 3,400 people — almost a decade ago. The fund manager installed its own management team at the chicken producer after picking up financial irregularities, with Manzini — a former investment banker at the PIC — leading the turnaround strategy.
South Africa generates more than 2 million tons of the protein annually, and is home to the largest chicken-producing companies on the continent. RCL Foods Ltd., which is controlled by South African billionaire Johann Rupert’s Remgro Ltd., placed its chicken business Rainbow on the Johannesburg bourse in June, with the producer now valued at 3.1 billion rand.
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