KONSORTIUM Holdings on Wednesday said that its plans to raise R500m through a public offering of over-the-counter shares were motivated by the need to control the wool market in the country and beyond.
South Africa produces 15-million kilograms of wool annually, of which Konsortium wants to supply 10-million kilograms.
Konsortium CEO Braam Coetzee said: “Farmers are price makers not takers. This is about scales of economy; the whole farming business worldwide is going corporate.”
The wool industry is one of the oldest agricultural industries in South Africa and plays an important economic role as an earner of foreign exchange for the country, which is why the company said it had appointed Segard Masurel, a wool marketing firm, to help establish its global presence.
Konsortium has joined a long list of unlisted entities that have gone public. Mr Coetzee said listing on the JSE would happen, but not soon.
