Rhodes Food Group Raises R600 Million In Listings

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Groot Drakenstein – Rhodes Food Group has raised R600 million in a private placement ahead of its listing on the JSE next Thursday, 2 October.

The offer price of R12.00 per share implies a market capitalisation of R2.65 billion for the Western Cape based food producer. The company’s free float is anticipated to be 46%.

The offer included the placing of 50 million shares to raise gross proceeds of R600 million and the placing of 42.75 million shares offered for sale by the existing shareholders, Capitalworks (71%) and management (29%).

The total value of the offer was R1.2 billion.

Chief executive officer, Bruce Henderson, said the company will use the net proceeds of the listing to invest in capacity expansion, reduce debt and provide greater balance sheet flexibility.

“The listing will accelerate Rhodes Food Group’s strategic growth plan and create capacity for selective acquisitions.”

Rhodes Food Group is a leading producer of convenience meal solutions across fresh, frozen and long-life product formats. The company’s growing portfolio of strong brands includes Rhodes, Magpie, Bull Brand, Hazeldene, Portobello and Trout Hall. These brands are complemented by private label product ranges prepared for selected domestic and international retailers.

Morgan Stanley & Co. International plc, Rand Merchant Bank, a division of FirstRand Bank Limited, and Renaissance Securities (Cyprus) Limited acted as joint global co-ordinators and joint bookrunners in relation to the offering.


Issued by Tier 1 Investor Relations on behalf of Rhodes Food Group Holdings Limited

For further information kindly contact:
Graeme Lillie, Tier 1 Investor Relations
021 702 3102 / 082 468 1507

DISCLAIMER

This document and the information contained herein are not for distribution in or into the United States of America. This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securities of Rhodes Food Group Holdings Limited have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This document does not constitute an offer to the public for the sale of or subscription for, or the solicitation of an offer to buy and/or subscribe for, shares as defined in the South African Companies Act, No. 71 of 2008 (as amended) or otherwise (the “Act”) and will not be distributed to any person in South Africa in any manner which could be construed as an offer to the public in terms of the Act. This document does not constitute a prospectus registered and/or issued in terms of the Act.