Quick service restaurant operator Simbisa Brands says its seeking regulatory and shareholder approvals for dual listing, with the secondary listing on the London Stock Exchange Alternative Investment Market and the acquisition of United Arab Emirates-based fast food group, Foodfund.
Simbisa, which operates in several countries in Africa, wants the AIM-listing to access equity financing from international markets and, including cheaper debt.
It plans to issue 75 million new shares through an initial public offering (IPO) on AIM and to acquire Foodfund shares in exchange for an issuance of some of the new Simbisa ordinary shares listed on the same bourse.
“The principal reason for the proposed Secondary Listing is to enable the company to access additional funding from international markets in order to finance regional and international expansion activities and to enable the proposed acquisition of Foodfund,” Simbisa said in a circular to shareholders today.
Up to 198.6 million Simbisa shares will be issued to Foodfund shareholders as settlement for the acquisition of the group.
“The capital raised through the IPO will be used to fund regional expansion activities through a combination of capital expenditure in existing regional markets and identifying new acquisitions,” the circular read.
Foodfund is a family owned and operated business incorporated in the United Arab Emirates, the British Virgin islands and South Africa, with a footprint across the globe.
The company currently owns 17 outlets operating under 8 independent food and beverage brands situated in Europe, Middle East, South Africa and United Kingdom.
Foodfund reported a revenue of AED153 million ($41.6 million) and a profit of AED7.9 million ($2.2 million) in the year ended June 30, 2017.
Simbisa, a spin-off from the Zimbabwe Stock Exchange listed Innscor, reported a net income of $6.3 million for the same period, while revenue stood at $158.9 million.
Major shareholders of Simbisa as at January 31, 2018 include ZMD Investment, Stanbic Nominees and HM Barbour Private limited with 18.47 percent, 18.45 percent and 17.96 percent respectively. –The Source
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