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Johannesburg - South African industrial conglomerate The Bidvest
Group has received unsolicited proposals for its food service unit,
it said on Wednesday, which have sent its shares surging more than 5%.
Bidvest, whose businesses also include auto retailing and
shipping, said its food service operations are attractive with strong growth
prospects.
It said in a statement that it has appointed a committee to
explore whether such proposals optimise value for shareholders.
Shares in the company were up 5.05% to R162.35 in Wednesday
afternoon trade, valuing it at R53.1bn and outperforming a slightly lower JSE
Top 40 - (Tradeable) [JSE:J200] index of blue chips.
One analyst said the proposals, which could result in bids
for the unit, provide Bidvest with an opportunity to spin off the division to
unlock its full value.
"Ultimately, they were looking to separate it out of
Bidvest one way or another and this certainly is quite a good option they have
to look at seriously," said Mark Hodgson, an analyst at Avior Research.
The food service unit, which runs brands such as Deli XL and
3663 Wholesale, contributed over half of the group's sales of R58.4bn in the
six months to the end of December.
