Quantum Food Holdings

  • Quantum Food Holdings (QFH) is an agricultural business that has four focus areas   namely animal feeds, eggs & layer livestock, broilers and related   businesses on the African continent outside South Africa. The company is   conservatively managed and management in our view has a decent track record   of creating value despite tough trading conditions over the last several   years.

  • Earlier   this week it was announced that agri-holding company Zeder sold its 32% stake   in QFH to unlisted competitor Country Bird Holdings for R308 million or R5   per share.

  • Given the large discount to NAV per share (R9.60) as well as the   conservative manner management has run the business, QFH has for some time   been one of our preferred picks on the local market. With QFH currently   trading at a 15% discount to the price Country Bird paid Zeder, we would   advise investors to purchase the stock while a margin of safety is provided   by the deep discount to NAV.

Quantum Food Holdings