Emerging markets investor Aureos has sold its stake in Golden Lay, a Zambia-based company involved in the production, distribution and sale of chicken table eggs, in a $24m secondary transaction to African private equity firm Phatisa.
Phatisa clinched the deal through its African Agriculture Fund (AAF), which will invest alongside the management in a combination of mezzanine and equity funding.
Golden Lay is the foremost producer of table eggs in Zambia, supplying its products to the Copperbelt, as well as to the Democratic Republic of Congo.
Eggs are an affordable source of high quality protein, but most African countries are net importers of poultry products. This might be unexpected, as chicken is an essential part of their daily diet and chickens are bred in almost every homestead.
However demand outstrips local supply. There may be many chicken farmers in Africa, but most of them are not at a commercial scale, which creates huge potential for more investment in production in this industry, AAF said.
Aureos first backed the company in 2006. The London-based firm also recently sold its stake in South African brick maker SA Block to Afrimat, a black empowered open pit mining company listed on the Main Board of the Johannesburg Stock Exchange.
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