JOHANNESBURG - A leading producer and supplier of high-quality products in the consumer packaged goods industry has said that it planned to list on the JSE by offering new shares to raise about R1.5 billion.
The Libstar Holdings group said yesterday that it was yet to decide the date of the expected listing as the process was subject to market conditions and approval by the JSE.
It said it would list in the food products sector once all the regulatory approvals had been met.
Chief executive and co-founder Andries van Rensburg said key management would remain materially invested in Libstar after the listing to ensure strong alignment between existing and new shareholders.
“The decision to embark upon a JSE listing is an exciting step in the next phase of Libstar’s development and growth story,” Van Rensburg said. “The capital that we raise from the listing will support our growth prospects and allow us to, among other things, invest further in our categories and manufacturing facilities.”
Libstar, one of the largest unlisted food and personal care manufacturers in South Africa, said it operated 27 business units across the country.
The group, which owns brands such as Denny, Cook ‘* Bake, Lancewood, Cape Herb and Goldcrest, prides itself on being a Level 6 black economic empowerment contributor as it is committed to transformation.
Standard Bank and JP Morgan Securities have been appointed as joint global co-ordinators and joint book runners in relation to the listing.
Standard Bank has been appointed as JSE sponsor to Libstar.
Linklaters and Webber Wentzel have been appointed as legal advisers to the joint global co-ordinators.
Cliffe Dekker Hofmeyr and Clifford Chance have been appointed as legal advisers to the company.
The group started its operations in 2005 and today it boosts about R8.8billion in revenue, which has been achieved through both organic and acquisitive growth.
It said that 41percent of its staff came from previously disadvantaged groups and they also make up 46percent of its management.
Empowerment
The group also expects to conclude a black economic empowerment deal before listing to establish an employee share trust as well as a trust aimed at encouraging the development of black-owned businesses within the Libstar value chain.
Van Rensburg said Libstar would target a free float of at least 40percent.
The company’s major shareholders include APEF Pacific Mauritius, which owns 70.93percent, the Public Investment Corporation, which controls 19.36percent, and Libstar management, whose stake is 9.71percent.
Another co-founder and financial director, Robin Smith, said introducing Libstar to the public markets would enable the group to augment its growth strategy and strengthen its market position in a number of areas.
“Libstar has a strong track record of growth and financial performance and is well-positioned to capitalise on the opportunities that lie ahead for the future development of the company,” Smith said.