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Cape Town - African Equity Empowerment Investments will list subsidiary Premier Foods and Fishing (PFF) on the JSE in March to raise R526.5m in order to grow its market share.
Premier Fishing, which is one of the largest black-owned and controlled fishing companies in South Africa, said in a statement on Monday that shares have been granted a listing on the main board of the JSE from 2 March 2017.
It will list 117 million ordinary shares at R4.50 per share in a bid to raise capital to “provide the company with access to capital in order to grow its business both organically and by way of future acquisitions”, it said in a statement.
“The proceeds of the private placement will be (used)… to provide PFF with additional capital to fund its further expansion,” it said.
This will “allow the company to use listed scrip to fund future acquisitions (and) give its employees and members of communities in which it operates, as well as the general public an opportunity to acquire an equity stake in the company”.
The listing “will also provide shareholders with a liquid, tradeable asset within a regulated environment and with a market-determined share price”.
With a workforce of about 350 people, Premier Fishing and its subsidiaries hold medium to long-term fishing rights in west coast rock lobster, south coast rock lobster, anchovy and pilchard, hake deep-sea trawl, longline and squid. In addition, through Marine Growers, Premier Fishing owns an abalone farm and invests in organic agriculture through the Seagro range of products.
Its dividend policy will be to distribute 30% of its annual free cash flow to shareholders.
PSG Capital is acting as the transaction advisor, sponsor and bookrunner to the listing.
The market roadshow is planned for the week starting on 13 February 2017. Audience presentations will be held in Johannesburg on 14 February and Cape Town 16 February.
