Citriona Valley Farms — Exit Strategy & Investor Liquidity

The Company recognises the importance of providing investors with a clear pathway to liquidity. Multiple exit mechanisms are available, calibrated to the investment horizon and return expectations of different investor categories.

Citriona Valley Farms (Pty) Ltd Business PlanSection 13 › Exit Strategy & Investor Liquidity

Section 13 · Business Plan

Exit Strategy & Investor Liquidity

The Company recognises the importance of providing investors with a clear pathway to liquidity. Multiple exit mechanisms are available, calibrated to the investment horizon and return expectations of different investor categories.

Internal Rate of Return
22–26%

Base case 24%, on a 5–6 year payback, with exit options including trade sale, strategic acquisition and management buyout.

The Company recognises the importance of providing investors with a clear pathway to liquidity. Multiple exit mechanisms are available, calibrated to the investment horizon and return expectations of different investor categories.

13.1 Primary Exit Options

Strategic Trade Sale (Preferred – Year 7–10): Sale
of the entire enterprise or a controlling stake to a strategic acquirer,
such as a large-scale South African citrus producer (e.g., Patensie
Citrus, Komati Group), an international agricultural conglomerate, or a
private equity-backed agricultural platform. Based on comparable
transaction multiples in the South African citrus sector (6–8x EBITDA),
a Year 7 trade sale could yield a valuation of ZAR 260–350 million.
Agricultural Investment Fund Sale: Sale to a
specialised agricultural investment fund or family office seeking
exposure to the South African citrus sector. This route may offer
valuation premiums for well-managed, export-certified operations with
strong ESG credentials.
Dividend Yield Model: For investors with a long-term
horizon, the Company will institute a progressive dividend policy from
Year 5 onwards, targeting a payout ratio of 25–35% of net profit. At
Year 7 projected net profit of R29.1 million, this implies annual
dividends of R7.3–10.2 million.
Agricultural REIT / Listed Vehicle: In the longer
term (Year 8–10+), the Company may explore listing on the JSE’s AltX or
inclusion in an agricultural REIT structure, providing ongoing liquidity
and public market valuation.

13.2 Indicative Valuation Range

Methodology Year 5 Valuation Year 7 Valuation
EBITDA Multiple (7x) R208M R306M
DCF (12% WACC) R172M R285M
Comparable Transactions R195M R320M
Average Implied Valuation R192M R304M

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