Bidvest Group Ltd plans to spin off and sell shares in its food business on the Johannesburg Stock Exchange (JSE), as it reorganizes its operations into three separate units — Bidvest Industrial Holdings, Bidvest Foodservices and BidvestCapital Proprietary.
The South African company’s Foodservice business has been one of its best performing businesses, contributing over half of the company’s R200 billion sales ($12.51 billion).
“To provide shareholders with the opportunity to participate directly in Bidvest’s food service operations, Bidvest intends to unbundle and separately list the food service business,” the company said on Monday in a statement.
Speculations had been rife across markets about a possible listing of Bidvest Foodservice since 2011. It almost happened in 2014 until the company decided against it after weighing options.
“The board has concluded that the potential listing will not, in current circumstances, be in shareholders’ best interest,” Bidvest said in a statement at the time. Now that the company feels the time is right, it is listing at home.
The successful completion of the transaction is subject to regulatory approval, the company said.
As at 17:00 South Africa Standard Time on Monday, Bidvest’s shares sold at 36,276.00 ZAC (South African cents) on the JSE, rising by 0.43 percent.