Consol to list on the JSE after an 11-year break
Seeks to raise R2.7bn to strengthen balance sheet after delisting in 2007
GLASSMAKER Consol is planning to return to the JSE after an 11-year absence to raise R2.7 billion to strengthen its balance sheet
Chief executive Mike Arnold said yesterday that Consol planned to list as soon as the relevant approvals from the JSE were obtained.
“We have just published an intention to float and we have consulted the JSE, but first we must meet all the required approvals by the JSE.
“Normally the process takes between four and five weeks to complete and then we will update the market.”
The group delisted in 2007 after it was taken over by a consortium of private equity investors led by Brait Private Equity. Other investors included Old Mutual Private Equity, Sanlam Private Equity and HarbourVest.
Arnold said Consol would list in the Industrials: Containers and Packaging sector of the JSE. He said additional listing proceeds of an amount to be determined would be used to repay a portion of the group’s shareholder loans.
“The balance of the shareholder loans will be converted to equity upon listing. Certain existing shareholders may also sell additional shares for the purpose of covering over-allotments of up to 15 percent of the total number of shares placed as part of the listing,” the group said.
Merrill Lynch International, Goldman Sachs, Rand Merchant Bank and Standard Bank have been appointed as joint global co-ordinators to the listing, while Linklaters and Webber Wentzel will act as legal advisers.
Facilities
Consol is the leading glass packaging manufacturer in sub-Saharan Africa by manufacturing capacity and it provides glass packaging products to customers in a variety of industries including beer, wine, flavoured alcoholic beverages, non-alcoholic beverages, spirits and food.
Consol has operations in South Africa, Kenya and Nigeria, and exports to 17 African countries. It is also constructing a new facility in Ethiopia, expected to be commissioned during the fourth quarter of 2018.
It has four glass manufacturing facilities, 11 glass furnaces and 29 production lines in South Africa and two facilities in Kenya and Nigeria.
Its major customers include Anheuser-Busch InBev, Diageo, Distell, East African Breweries, Namibia Breweries, Heineken and Tiger Brands.
In the six months to end December results, the group’s revenue and adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) were R3.72bn and R936 million respectively, while in the fullyear results to end June, it reported revenue of R6.19bn and adjusted Ebitda of R1.61bn.
The group said the new facility in Ethiopia was expected to have an initial production rate of approximately 40 000 tons of good glass output a year, increasing to approximately 60 000 tons of good glass output a year as the facility increases production to its installed capacity over a three-year period, based on market demand.
Arnold said Consol targeted aggressive growth locally and through the rest of the African continent.
“By combining our competitive advantage and technical ability with our exceptional level of experience within the current committed leadership team, we can open up exciting opportunities to create significant value.”