Buyout said to value Africa's largest feedlot at R6bn

Africa’s largest cattle feedlot is considering a management buyout that will value the company based south of Johannesburg at about R6bn, according to two people familiar with the matter.

The management of Karan Beef may approach the Public Investment Corporation - which manages pension funds of South African government workers - to assist it with funding, said the people, who asked not to be identified because the information isn’t public.

The managers are considering purchasing a part or all of the business depending on the finance available to them, the people said.

Founded by the Karan family on their farm in 1974 with fewer than 100 head of cattle, the company now owns a herd of about 150 000 and has also purchased three adjoining farms, an abattoir and a nearby distribution centre, according to its website.

Karan Beef is a closely held company, which doesn’t comment on market speculation, the firm said.

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