KAL Group sets effective date for Agriplas disposal

KAL Group Limited has moved to the final stages of its strategic exit from the irrigation sector, announcing that the disposal of Agriplas Proprietary Limited has officially moved to its effective date of 31 January 2026.

In a recent update to shareholders, the group confirmed that, while most hurdles have been cleared, one final regulatory approval remains outstanding.

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The deal, which involves the sale of Agriplas’s entire issued share capital and claims held by Agrimark Operations Limited, was first brought to market in September 2025. It also includes the sale of the property housing Agriplas’s manufacturing facility.

By setting the effective date at the end of January, the parties have essentially allowed the economic benefits and risks of the business to transfer, while administrative and cross-border formalities conclude.

Regulatory extension and procedural waivers

Despite the momentum, the transaction is currently awaiting the green light from the Eswatini Competition Commission.

To accommodate this, KAL Group and the purchaser, Agriplas Holdings Proprietary Limited, have signed an addendum to their original agreement, extending the deadline for this specific approval to 16 February 2026.

In a move to streamline the final handover, the parties also agreed to waive a specific suspensive condition that required the conveyancer to confirm the signing of all property transfer documents and the payment of related transfer amounts.

This procedural waiver, combined with the backdated effective date, suggests a high level of certainty between the parties that the deal will reach its ultimate conclusion.

Strategic refinement

The disposal of Agriplas is said to represent a refinement of KAL Group’s broader portfolio.

By divesting the manufacturing and irrigation-focused entity, the Paarl-based group continues to focus on its core retail and agri-business operations.

KAL Group has committed to providing further updates to the market as the final Eswatini regulatory window approaches its mid-February deadline.

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