You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Premier fishing unit to list in March on JSE

Company will use that money to grow the business further.

CAPE TOWN – South Africa’s African Equity Empowerment Investments will list its fishing and food unit on the Johannesburg Stock Exchange on March 2 to grow its market share, its chief executive said on Wednesday.

Khalid Abdulla said the firm expected the Initial Public Offering (IPO) to value the unit at around R1.2 billion ($90 million) and that the cash “war chest” from the IPO will be used for further growth and acquisitions.

“We will be raising about R550 million with the listing and obviously we will use that money to grow the business further, to buy other fishing and food-related businesses,” Abdulla told Reuters in an interview.

“We will have a nice war chest to go and build this business to another level,” he said.

He said the company, South Africa’s largest black-owned and managed fishing and food firm, will be placing about 45-49% of Premier’s share on the market, with each share selling for approximately R4.50.

Headquarted in Cape Town, Premier Food and Fishing said during its 2016 end-of-year results that operating profit rose by 37% to R74 million on the back of higher sales and good catch rates. 

Abdulla said the firm would initially be looking for acquisition opportunities in the fishing sector that complement Premier’s existing portfolio of species – where it holds medium to long-term quotas for west coast rock lobster, squid, pilchards and hake.

He said Premier’s empowerment credentials, part of government policy to spread wealth to the majority of blacks excluded during white-minority rule, should stand it in good stead when buying other companies.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: