Johannesburg - Bidvest Group will offer shares worth as much as R4.4 billion ($287 million) in recently spun-off foodservices unit Bid Corp on the Johannesburg Stock Exchange, after some shareholders weren’t able to take up their allocation.
As many as 18.4 million Bid Corp shares will be available for sale, with proceeds going to investors who were due to receive the stock, Johannesburg-based Bidvest said in a statement after trading had closed on Tuesday.
The securities will be sold at R230 to R240 each, compared with a closing price of R250, according to a term sheet.
Bidvest, which operates a range of businesses including car rentals, freight and office management, unbundled the food-services business last month to help management focus on their respective businesses and identify and pursue growth opportunities, including acquisitions.
Bid Corp shares gained on their first day of trading, but have since slipped below their opening price of R270.
Standard Bank Group is acting as sole global co-ordinator and joint bookrunner with Bank of America Merrill Lynch.
BLOOMBERG