Bidvest spins off foodservices unit

File picture: Independent Media

File picture: Independent Media

Published May 30, 2016

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Johannesburg - Bidvest Group and its newly spun off foodservices unit, Bid Corp, increased their combined market valuations after the latter started trading in Johannesburg on Monday, indicating investors see more value in separating the businesses.

Bid Corp shares started trading at R270, valuing the company at R91.6 billion ($5.8 billion).

Read: Bidvest to list foodservice unit in May

Bidvest, which will now focus on non-food services such as car rental, freight and office management, is now valued at R38.6 billion, bringing the combined market capitalisation to about R130 billion, compared with about R124 billion on Friday.

The listing on the Johannesburg Stock Exchange “positions us superbly for our next phase of organic and acquisitive growth”, Bid Corp Chief Executive Officer Bernard Berson said in an emailed statement.

“The focus we now have as a standalone company will strengthen management’s determination to continue generating and enhancing sustainable, long-term returns for all stakeholders.”

Foodservice unit accounted for 60 percent of Bidvest’s sales in the six months through December.

The unit includes businesses from catering to food-processing, and operates in more than 20 countries across Europe, Australasia, the Middle East and Southern Africa, according to the company’s website.

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