The IFC’s Board of Directors is set to meet in late June to consider a $30 million equity investment in Number Two Piggeries, South Africa’s largest pork producer, accounting for 20% of the country’s pig production. The capital would be used to provide working capital, achieve efficiencies at the company’s pig and dairy farms and processing facilities, thereby expanding the firm’s production capacity and allowing it to meet growing demand for its products. The size of the potential stake and other terms of the deal were not disclosed.
Number Two Piggeries was founded in 1976 by David Osborne, and is now owned by him and a group of local farmers. The company’s production facilities are located in the Eastern Cape, Western Cape, Free State, Kwa-Zulu Natal and Gauteng Provinces as well as in Mariental in Namibia. In addition to providing capital, the IFC will play a role in the further development of the company, providing strategic advice, improving corporate governance, management systems and financial reporting as well as enhancing the firm’s environmental standards.
According to the Summary of Investment Information published on the IFC’s website, the board meeting to review the investment is scheduled for June 20th.