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Consol aims to use R2.7bn of JSE comeback proceeds

Apr 05 2018 12:22
Ntaoleng Lechela

Johannesburg – Glass packaging manufacturer Consol Holdings Limited announced on Thursday its intention to list on the main board of JSE.

However, the group is still awaiting JSE approval.

Consol, which was listed on the JSE before, said it intends to use R2.7bn of the proceeds of the listing to strengthen and deleverage its balance sheet.

The proceeds will also be used to repay a portion of the group's shareholder loan, with the balance to be converted into equity after the listing is approved.

Consol chairperson Bruce MacRobert said the group’s management and technical teams have consistently added value to the bottom line, which has translated into significant earnings growth.

"This bodes well for the continued growth trajectory we envisage, and which the capital raised from this exciting listing will expedite,” said MacRobert.

Consol was delisted from the JSE inl 2007 when it was taken private by a consortium of private equity investors, led by Brait Private Equity and including Old Mutual Private Equity, Sanlam Private Equity, HarbourVest Partners and the management of Consol, the group said.

Consol expects the listing to further its growth strategy and assist in acquisition opportunities. 

As part of its growth strategy, the company managed to raise its revenue to R3.7m in the year ended December 31 2017.

Consol CEO Mike Arnold said: “As sub-Saharan Africa’s leading glass manufacturing and packaging company, our development plans are for aggressive growth locally and through the rest of the African continent.”

The group further expanded its reach in Africa by opening a new facility in Ethiopia.

Consol said no dividends will be paid on the results for the financial year ending on June 30 2018.

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consol  |  retail  |  jse
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