Johannesburg - Bidvest, the second-biggest South African company by revenue, decided against selling shares in its food-services unit on the London Stock Exchange after studying the option.
“The board has concluded that the potential listing will not, in current circumstances, be in shareholders’ best interest,” Johannesburg-based Bidvest said in a statement today.
“The strategic review has identified new opportunities in regard to the group’s operations which will be pursued over time.”
Chief executive Brian Joffe said in September that selling the unit’s stock on the London market may provide cheaper funding to expand into new markets including the US.
Barclays and Investec were appointed to evaluate the potential listing.
Bidvest shares fell 2.3 percent to 296.31 rand as of 9:54 am in Johannesburg, paring their gain this year to 11 percent.
Bidvest will continue to focus on increasing “scale through organic expansion and acquisitions both locally and internationally,” it said.
The company’s businesses range from food services to pharmaceutical products, with South Africa as its main market.
In the year through June, sales rose 20 percent to 183.6 billion rand, of which food services accounted for more than half.
Acquisitions added 7.2 billion rand in sales last year. - Bloomberg News