Pioneer Foods details Quantum spin off

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Published Sep 18, 2014

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Johannesburg - Pioneer Foods, a South African cereals and fruit-juice producer, will offer investors one Quantum Foods Holdings share for every Pioneer security as its poultry company prepares an initial public offering.

“The board of directors of Pioneer Foods has resolved to proceed with the unbundling,” Paarl, South Africa-based Pioneer said in a statement today.

Pioneer’s Class A investors, who get 30 percent of their dividends with the rest used to settle debt following a black-economic empowerment transaction in 2006, will get 0.3 Quantum shares for each unit held, it said.

The listing of Quantum, which sells Nulaid eggs, Nova Feeds and Tydstroom fresh and frozen chicken packs, is planned for October 6.

Pioneer is spinning off Quantum to focus on branded consumer goods amid a slowing South African economy where consumers are struggling with rising inflation and unemployment.

Rhodes Food Group Holdings, a producer of prepared meals, said this week it plans to raise as much as 1.35 billion rand in a share sale next month,

Quantum doesn’t intend to raise capital before the shares start trading, the company said in a separate statement today.

After the listing Quantum wants to expand in Africa, have the opportunity to develop strategic partnerships and get direct access to capital markets, it said. - Bloomberg News

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