Asa enters South African slaughtering business

Asa Resource Group continued its expansion into agriculture on Thursday, completing the acquisition of 62% of the KEPL Slaughterhouse business in South Africa for a total cash consideration of ZAR 6.2m (£0.29m).

The remaining 38% of KP will be acquired by Vital Profit Group, which will act as operator. Asa also secured the right to appoint two directors to the board of KP.

"This acquisition transaction provides a great opportunity for the group to enter into the local slaughtering and meat processing market in South Africa,” said Asa executive chairman Yat Hoi Ning.

“The transaction optimises the business scope and enhances the Asa Group as a whole,” he added.

Asa’s board said the acquisition was in line with its business strategy of diversified development into agriculture as one of its seven core businesses, which also include gold, diamond, copper and nickel mining, as well as property management and mining services.

“Acquiring a slaughterhouse will provide a solid foundation for the development of our Group's agricultural business,” Yat Hoi Ning explained.