Ububele Holdings Limited is a JSE, AltX listed South African holding company, with the stated objective of becoming the business partner of choice in Africa providing lucrative investment opportunities in food and agriculture related sectors.
Our vision is to be a business partner of choice; providing lucrative investment opportunities in food and agriculture-related sectors.
Our mission is to invest in new food and agriculture-related businesses and to support and grow our existing business to create sustainable value for all our stakeholders.
Ububele Holdings (Pty) Ltd was formed in 2002. At that time the board had not identified nor targeted any specific business sectors in which it intended to focus its investments. At one point Ububele had investments in airline catering, food production, agriculture, security and property.
Over time the agriculture and food production businesses grew steadily and showed much growth potential. The South African airline catering industry was facing some challenges at the time and for strategic reasons the Ububele board of directors decided to sell off Ground Crew at the end of 2005. The sale made it possible for the board to release the majority of its previous owners as shareholders and to settle some debt. By decreasing debt levels and increasing current assets the sale improved the balance sheet of Ububele Holdings (Pty) Ltd.
Since the disposal of Ground Crew, Ububele has acquired more businesses in the food and agriculture sectors – Novon WTP, R.T. Chemicals, Linktrade and Just Fruit and Veg. Importantly it also then made it possible for Ububele to establish itself in airline catering in Windhoek at Hosea Kutako International Airport.
At the beginning of 2007 Ububele’s board decided that to secure growth and sustainability it would require external funding. The board had identified strategic acquisitions, but cash generated from operations was no longer enough to finance growth through acquisitions. Amongst other things it became evident that in order to remain sustainable it would be necessary to vertically integrate the chemical business by acquiring a manufacturer of chemicals. In this instance it was R.T. Chemicals who owned several chemical registrations and formulated some of its own product.
At this time, Ububele could list on the JSE (AltX) to raise such funds because the company met with the JSE (AltX) requirements but decided rather to postpone the listing to 2009 to give itself time to bulk up its assets and go to the equities market with a stronger balance sheet. Advice from the market was that in order for Ububele to be attractive to the equities market, it had to be more focused in its investments. Much growth was also in the pipeline and to secure such growth prior to the listing would aid the strengthening of the statement of financial position.
At this point the natural way to go was to focus on the food-processing and agriculture-related business sectors. The group had expertise in these sectors and the sectors held much growth opportunity worldwide. The board had access to research results which indicated that food security would be receiving more and more attention from Government and Agri business leaders. It therefore made sense to the board, having expertise in both sectors and being convinced that agriculture and food are high-growth sectors, to focus its resources and energy on agriculture and food processing.
On 11 November 2009 Ububele listed on the AltX. By then the balance sheet was stronger and Ububele had proved to itself and its shareholders that it had the expertise to grow further into these sectors. After eight years in business it provided its shareholders and the market with a good track record.