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Johannesburg - Dairy products company Clover said Monday it plans to raise R500m in a share offering and expects to list on the JSE on Tuesday December 14.
The company will list its ordinary shares under the share code "CLR" in the food producers' sector of the JSE Main Board and its preference shares in the preference share sector of the Main Board under the share code "CLRP".
The listing will be in conjunction with an offer to raise up to R500m by way of a private placement of new ordinary shares with institutional investors, selected other investors, management and existing ordinary shareholders.
Rand Merchant Bank is the lead advisor and bookrunner for the offer.
The offer price for the shares will be between R9 and 12.00 rand per share. The final price will be determined following the conclusion of the offer and is expected to be announced on Thursday, 9 December.
The net proceeds of the offer of ordinary shares will be used to fund the company's capital projects, working capital and for general corporate purposes.
Clover's primary capital project, Project Cielo Blu, aims to redress historical inefficiencies in the supply chain, increase profitability and expand capacity to support current and future growth plans through the relocation of production facilities closer to milk sources in order to reduce distribution and related costs. The group also focuses on the expansion of key production and distribution centres and warehouses to create sufficient capacity to support current and future medium-term growth.
Clover has been operating since 1898. It was converted from a co-operative society into a public company in 2003 and both its ordinary and preference shares currently trade on an over the counter market facilitated by the Company.
Despite higher raw milk costs, the company's gross margin increased from 26.3% to 27.8% for the financial year to June 30 2010. Contributing factors included an improved product mix, reduced production and packaging costs and fixed cost cutting initiatives.
The company reported an operating profit adjusted for exceptional items of R320.8m compared with 2009's R48.6m for the year.
The company will list its ordinary shares under the share code "CLR" in the food producers' sector of the JSE Main Board and its preference shares in the preference share sector of the Main Board under the share code "CLRP".
The listing will be in conjunction with an offer to raise up to R500m by way of a private placement of new ordinary shares with institutional investors, selected other investors, management and existing ordinary shareholders.
Rand Merchant Bank is the lead advisor and bookrunner for the offer.
The offer price for the shares will be between R9 and 12.00 rand per share. The final price will be determined following the conclusion of the offer and is expected to be announced on Thursday, 9 December.
The net proceeds of the offer of ordinary shares will be used to fund the company's capital projects, working capital and for general corporate purposes.
Clover's primary capital project, Project Cielo Blu, aims to redress historical inefficiencies in the supply chain, increase profitability and expand capacity to support current and future growth plans through the relocation of production facilities closer to milk sources in order to reduce distribution and related costs. The group also focuses on the expansion of key production and distribution centres and warehouses to create sufficient capacity to support current and future medium-term growth.
Clover has been operating since 1898. It was converted from a co-operative society into a public company in 2003 and both its ordinary and preference shares currently trade on an over the counter market facilitated by the Company.
Despite higher raw milk costs, the company's gross margin increased from 26.3% to 27.8% for the financial year to June 30 2010. Contributing factors included an improved product mix, reduced production and packaging costs and fixed cost cutting initiatives.
The company reported an operating profit adjusted for exceptional items of R320.8m compared with 2009's R48.6m for the year.
