South African billionaire Christo Wiese’s Premier to acquire RFG in $340 million share swap

Premier Group, a JSE-listed consumer packaged goods company partly owned by South African billionaire Christo Wiese, is set to acquire fellow South African food producer RFG Holdings in a share-swap deal valued at up to R5.9 billion ($340 million).

Premier offers 1:7 share swap

The transaction provides a premium for RFG shareholders and strengthens Premier’s footprint in Southern Africa. Under the agreement, Premier—which operates across South Africa, Mozambique, Eswatini, Lesotho, and maintains a sales office in the United Kingdom—will offer one Premier share for every seven RFG shares held.

The swap represents a 35.6 percent premium on closing prices and a 37.5 percent premium on the 30-day volume-weighted average price as of Oct. 14, 2025. The deal is based on reference prices of R22 ($1.27) per RFG share and R154 ($8.9) per Premier share. Once completed, RFG shareholders will hold a combined 22.5 percent stake in the enlarged Premier Group.

RFG deal strengthens revenue mix

The acquisition is expected to strengthen Premier’s position as a leader in the packaged foods sector, thus enhancing its revenue mix while continuing to deliver strong returns to shareholders. The combined group is projected to generate nearly R28 billion ($1.62 billion) in annual revenue and a profit after tax of R1.7 billion ($98.4 million).

For RFG, a producer of fresh, frozen, and convenience meal solutions across South Africa and sub-Saharan Africa, joining Premier offers access to a broad manufacturing network of 30 mills, bakeries, and plants, supported by 28 distribution depots across the region, as well as Premier’s UK sales office. Premier exports 14 brands from South Africa to 41 countries worldwide.

Premier commands major South African markets

Premier’s scale in the industry is significant. Christo Wiese’s private investment company, Titan Premier Investments, owns 45.53 percent of Premier. The company commands 28 percent of the South African formal bread market, 38 percent of the wheat market, 15 percent of the sugar confectionery market and 22 percent of the feminine care market.

Despite spending R2.8 billion ($162 million) on new capital over the past five years, the company has continued to do well financially, with a return on invested capital of 24.9% as of March 31, 2025. Free cash conversion stood at around 73 percent for the 12 months ending Mar. 31, 2025, with net debt of R1.7 billion ($98.3 million), reflecting a leverage ratio of 0.7x.