Thebe Investment Corporation acquires majority stake in South African giant Miller Pride Milling

SOUTH AFRICA – Thebe Investment Corporation has acquired an additional 40% stake in South African giant Miller Pride Milling, a manufacturer, marketer, and distributor of basic essential staple food products in South Africa.

Financed by Old Mutual Alternative Investments’ Hybrid Capital Division, this deal allows Thebe, a leading black-owned investment company, to achieve a majority stake in Pride Milling, cementing its position in the food processing industry.

Pride Mill is renowned for its products, which include super maize meal, super fine maize meal, samp, grits, maize rice, and hominy chop. Additionally, the miller produces pulses, legumes, grains, sorghum products, pet foods, and animal feeds for commercial and industrial applications.

Rapulane Mabelane, Thebe’s Chief Investment Officer, remarked that the acquisition aligns with the group’s core purpose of “driving transformation, growing local industries, and building the communities we serve.”

 “By partnering with OM Alternatives Hybrid Capital and the exceptional Pride Milling team, we are well-positioned to substantially and positively impact food security. Our increased shareholding in Pride Milling will also provide employees with a direct shareholding in the company and increase supply opportunities for small and women-owned farmers,” added Mabelane.

This transaction underscores the crucial role of the private sector in supporting industries that are fundamental to food security.

Grain producers, processors, and distributors are vital in providing affordable food to those in need. According to Statistics South Africa (Stats SA), 21% of South Africans reported either inadequate or severely inadequate access to food in 2021.

“A material portion of our population is unsustainably food insecure,” stated Hashim Pohplonker, Senior Investment Associate at Hybrid Capital.

Hashim added that Thebe’s acquisition of Pride Milling, supported by Hybrid Capital’s funding, will enhance the food value chain, create employment opportunities, and, most importantly, ensure the availability of affordable, quality, and nutritious staple foods for a broad segment of our population.

Established in 2001, Pride Milling initially operated as a non-branded supplier focused on the Mpumalanga and KwaZulu-Natal regions.

The company expanded significantly after acquiring a processing and packaging plant in 2003 and upgrading to its first industrial maize mill in 2013. The miller entered an empowerment deal with Thebe in 2019, identifying the investment company as a strategic long-term shareholder.

Jorrie Jordaan, CEO and co-founder of Pride Milling, expressed optimism about Thebe’s deepened investment.

“With the additional resources and strategic guidance, we are poised to expand our operations and continue our journey of providing equitable access to staple foods and playing a role in economic development,” Jordaan said.

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