Innscor’s restaurants unit to list next month
DIVERSIFIED conglomerate, Innscor Africa Limited on Monday said it will separately list its restaurants unit on November 6.
This follows a meeting by the board of directors held on May 22, that approved the unbundling and listing of the Quick Service Restaurant business (Simbisa) from Innscor to become a stand-alone business.
The separate listing would allow the group to pursue mergers and acquisitions of companies operating similar businesses.
In a circular to shareholders, Innscor said the restaurants arm had 388 restaurants in 11 African countries and would be listed under a new company, Simbisa Brands Ltd.
Under the transaction, shareholders would receive one Simbisa share for every Innscor share and would be asked to approve the deal at an extraordinary meeting on November 2.
Last month, Innscor reported a six percent decline in revenue to US$814 million, excluding the discontinuing takeaway operations set to be unbundled, in the full year to June 30 as key units performed poorly, leading to management overhauls in some of them.
Presenting the company’s full year results, chief executive Antonio Fourie said the group had made management changes in five of its businesses which were facing challenges. The South African former Ellerine Holdings group chief executive himself took over from John Koumides in October last year to provide fresh impetus to the stuttering conglomerate.
SPAR Zambia, SPAR Zimbabwe, Colcom, and Bakers Inn are some of the businesses that have new management.
Profit after tax fell 53 percent to US$36,1 million.
Headline earnings per share declined 15 percent to 3,48 cents.