Company news in brief

Bidvest boasts robust interim performance

Shares in Bidvest surged more than 8% in early yesterday trading after the industrial conglomerate released far stronger interim results than the market had been anticipating.

Not only did it manage to lift its revenue 14% to R62.2 billion for the six months to end-December 2023; it recorded an 8.8% increase in trading profit to R6.5 billion, with five out of seven divisions delivering "double-digit trading profit growth".

CEO Mpumi Madisa noted in a results presentation that the performance was helped by Bidvest securing strong new business in South Africa and other areas, as well as a focus on growth margin management, and "outstanding expense management" across the group.

The group concluded nine acquisitions during the period under review, but Madisa indicated there was still room for.

"We do have some acquisitions in the pipeline. They’re at various stages, some of them are awaiting regulatory approval and some of these are at the non-binding phase."

She said the group was very comfortable with its pipeline saying the potential acquisitions in South Africa were across the range of industries it operated in.

Offshore, the acquisitions were a cross between facilities management and hygiene services offshore. – Fin24



RCL plans to separately list Rainbow

RCL Foods, which is controlled by Johann Rupert’s Remgro, has taken its first specific steps to unbundle its Rainbow chicken division, yesterday flagging a plan to list it separately.

While CEO Paul Cruickshank was not able to give a specific timeline yet for a proposed separation and listing of Rainbow, he said in an interview after the release of results for the six months to end December 2023 that it would be sooner rather than later.

"We are not talking years here, we are talking months."

Cruickshank said the company had flagged its intentions in 2021 to separate Rainbow from RCL Foods as it had done with its Vector Logistics business because they were both "better placed in a pure play environment".

A listing of Rainbow will, in effect, bring RCL, which also owns brands such as Yum Yum peanut butter and Selati Sugar, full circle. Previously, the Rainbow business was the original listing on the JSE in the late 1980s and early 1990s before it evolved into RCL Foods with the acquisition of Vector Logistics, Foodcorp and TSB Sugar, said Cruickshank. – Fin24



Canal gets extension for takeover offer

French media giant Canal has been granted an extension to April to make a mandatory takeover offer for DStv owner MultiChoice.

Last week, the Takeover Regulation Panel (TRP) ruled that Canal had to make the offer "immediately" after concluding South Africa's restrictions on foreign ownership don't eliminate all of its voting rights.

In early February, Canal had indicated it was interested in paying R105 per share for Africa's biggest pay-TV operator but was rebuffed by its board, which said this undervalued it.

Yesterday, Canal said it applied for and received an exemption from the TRP from adhering to the timing requirements.

"The panel has extended the time period ... by 25 business days. Accordingly, Canal is required to and will publish a firm intention announcement by no later than Monday, 8 April 2024."

Canal also recently increased its stake in the group to over 35% from 31.7%, just above a threshold requiring the company to make a mandatory offer to shareholders.

Complicating matters, however, is the fact that South Africa's Electronic Communications Act of 2005 limits foreign ownership of local broadcast licences. This means Canal can increase its shareholding in MultiChoice to any level, but its voting rights are limited to a maximum of 20%. – Fin24