Innscor shareholders approve unbundling retail and distribution divisions
INNSCOR Africa Limited says the group’s immediate focus after shareholders approved the unbundling of the group’s specialty retail and distribution cluster, was to consolidate its reconfigured focus which has turned the company into a light manufacturing firm.
In an interview after the group’s extra ordinary general meeting on Tuesday, chief executive Toni Fourie said the new thrust will be to unlock value from the new business model.
“We are just starting our new financial year and nothing much has happened, but our focus now is to consolidate the new thrust and create value out of it,” he said.
Fourie who was appointed group chief executive in 2014, adopted a strategy whose thrust involved internal re-organisation which has seen a couple of disposals, unbundling and staff restructuring.
Innscor shareholders approved the distribution of shares in its specialty retail and distribution company, Axia Corporation via a dividend in specie.
The unbundling of the group will make Innscor a fully-fledged light manufacturing company following the separate listing of Quick Service Restaurants last year.
According to the group, the separate listing will unlock value for shareholders; enable a clear operational focus that is attractive to investors while the new business will gain direct access to capital markets.
Axia Corporation has three business units, Distribution Group Africa (50,01 percent), Innscor Credit Retail t/a TV Sales and Home (66,67 percent) and Moregrow Enterprises, t/a Transerv, each operating as an independent profit centre with a dedicated management team. To ensure the smooth unbundling, the group had to move the shareholding of Distribution Africa of 50,1 percent in Breathaway Food Caterers the makers of Zap Nax and Iris Biscuits and sell the entire stake to NatFoods.
Subsequently, Axia shares issued will list on the Zimbabwe Stock Exchange (ZSE) on May 17, 2016.
The shareholders also approved the company’s share buyback scheme.
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