The amalgamation of Oos-Vrystaat Kaap Beherend SA (OVK) and CMW Operations Pty Ltd (CMW) to establish a financially stronger group to deliver a wider and better service to the agricultural sector, has been approved in principle at a meeting of the Board of Directors of SA Mohair Brokers Ltd (SAMB) in Port Elizabeth. The Board will now submit the proposed transaction for approval by SAMB shareholders.

Messrs Manie Botha and Arthur Short, respectively chairmen of the OVK and CMW Boards say in a joint press release that cooperation between OVK and CMW will also ensure greater stability. By joining forces the two companies, as a larger entity will improve the possibilities for competitiveness in the market.

As a group, risk is also reduced by greater diversification as well as potential growth in market share and with a stronger capital base the cost of operating capital, will also be reduced.

On the financial side, financing with growth potential will become available and risk will be reduced by means of better cash flow and greater economics of scale.

Operational synergy for both companies will be considerably stronger by utilizing the strengths of each company as part of building blocks for the larger group. CMW is to be retained as trading unit which means that the CMW trademark will also be retained. Accessibility to trading operations and branches will also improve.

Personnel are also assured of job security and growth potential. The shareholders of SAMB also benefit by possible acquisition of a shareholding in OVK, a company with an excellent dividend-record.

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Beter en meer omvattende diens aan die boere

’n Samesmelting tussen Oos-Vrystaat Kaap Beherend SA (OVK) and Cape Mohair & Wool Operations Pty Ltd en CMW Operations (CMW), om ’n finansieel sterker groep te vorm, wat ’n wyer en beter diens aan die landboubedryf kan lewer, is in beginsel op ’n direksievergadering van die SA Mohair Brokers Ltd (SAMB) in Port Elizabeth goedgekeur. Die direksie gaan die voorgestelde transaksie vir goedkeuring aan die SAMB-aandeelhouers voorlê.

Mnre. Manie Botha, voorsitter van die OVK-direksie en Arthur Short, SAMB-voorsitter, sê in ’n gesamentlike verklaring samewerking tussen OVK en CMW gaan groter stabiliteit beteken. Saam vorm die twee maatskappye ’n groter groep met beter moontlikhede vir bedinging in die mark.

As groep word risiko verminder deur groter diversifikasie en potensiële groei in markaandeel. Met ’n sterker kapitaalbasis sal bedryfskapitaal goedkoper beskikbaar wees.

Aan die finansiële kant sal daar finansiering met groeipotensiaal wees, risiko sal verminder word deur verbeterde kontantvloei en ’n groter skaal-ekonomie.

Operasionele sinergie sal vir albei maatskappye aansienlik sterker wees deurdat op die sterk punte van elke maatskappy as deel van ’n groter groep gebou kan word. CMW sal as handeldrywende eenheid behou word, wat sal beteken dat die CMW-handelsmerk ook behoue bly. Toegang tot handelsoperasies en –takke sal verbeter.

Vir die personeel hou dit werksekerheid in met moontlikhede van groei. Die samesmelting hou ook voordele in vir aandeelhouers van SAMB deur verkryging van moontlike aandeelhouding in OVK, ’n maatskappy met ’n uitstekende dividend-rekord.

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