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BVT - Bidvest - Update following strategic review of the Foodservice Business

Release Date: 18/08/2011 07:30
Code(s): BVT
Wrap Text

BVT - Bidvest - Update following strategic review of the Foodservice Business and Withdrawal of Cautionary Announcement The Bidvest Group Limited (Incorporated in the Republic of South Africa) (Registration number 1946/021180/06) Share code: BVT & ISIN ZAE000117321 ("Bidvest") Update following strategic review of the Foodservice Business and withdrawal of cautionary announcement Bidvest shareholders are referred to the cautionary announcement published on the Securities Exchange News Service on July 6 2011. The Board of Bidvest ("the Board") has completed its strategic review of the Foodservice Business ("Business") resulting from the receipt of various unsolicited proposals. These proposals highlight that the Business is a highly rated and appealing strategic asset. Despite the current difficult economic environment the review confirmed that the Business can continue to grow both organically and acquisitively. In assessing the proposals the Board strongly endorsed the Bidvest business model and reemphasised that a demerger should not take place if it is at the expense of critical mass and financial strength. The Board concluded that, whilst in the short term the proposals would have realised significant amounts of cash, they would not have optimised value nor the strategic benefits that are likely to flow from the current Bidvest structure over the medium term. Bidvest remains focused on identifying avenues for growth in the Business and in this regard Bidvest is pleased to announce that it has concluded Memorandums of Understandings to purchase foodservice businesses in Egypt, the Baltics, as well as in Chile, its first entry into the high growth South American market. Accordingly Bidvest shareholders are no longer required to exercise caution in dealing in their Bidvest shares. By order of the Board The Bidvest Group Limited August 18 2011 Sponsor: Investec Bank Limited Date: 18/08/2011 07:30:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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