BRAIT: 3,748 +69 (+1.88%)
South Africa's glass maker Consol IPO may raise up to $300 mln
(Corrects IPO value after company clarifies size depends on
JOHANNESBURG, April 16 (Reuters) - South African glass
bottle maker Consol aims to raise up to $300 million
via an initial public offering (IPO), it said on Monday,
returning the firm to public markets after more than a decade in
the hands of private equity groups
The flotation, pencilled in for April 30, comes amid growing
confidence among investors and business leaders that President
Cyril Ramaphosa will follow through on promises to revive the
economy and bring policy certainty.
Consol, bought out for 6.1 billion rand in 2007 by private
equity investors led by Brait, said it would sell
roughly a third of the company, listing between 2 billion shares
and 468.2 million shares at between 1.50 rand and 6.50 rand
The number of shares to be sold will depend on the price
achieved, the company said in a pre-listing statement. At the
top of the pricing range, the lower volume of shares would be
sold, raising about 3 billion rand ($249 million).
There is also a greenshoe option, or an over-allotment, of
as much as 114.1 million shares to underwriters.
Brait's stock has been hammered by concerns about its
biggest shareholder Christo Wiese and the performance of its
British retailer New Look. The South African tycoon is tallying
up losses from a share price crash in Steinhoff, a
retailer in the throes of an accounting scandal.
Consol, which counts blue chips such as Anheuser-Busch
InBev, Diageo and Heineken among its customers, said the listing
would allow shareholders to cash in on their 11-year investment
in the company and raise money to pay down debt, which includes
4.7 billion rand in loans from shareholders.
The company, which also operates in Kenya and Nigeria,
reported a 1.6 billion rand ($134 million) in core earnings in
the year to June 30, 2017 on revenue of 6.1 billion rand.
Goldman Sachs and BofA Merrill Lynch are working on the
listing, along with South African banks RMB and Standard Bank,
who will market the deal to domestic investors.
($1 = 12.0729 rand)
(Reporting by Tiisetso Motsoeneng
Editing by Edmund Blair and Louise Heavens)
First Published: 2018-04-16 10:55:58
Updated 2018-04-16 16:47:37
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.