Innscor Africa Limited shareholders have approved the unbundling of its retail and distribution business through a dividend in specie which will pave way for the separate listing of the unit on May 17, this year.
The unbundling of Axia Corporation was approved at an extraordinary general meeting on Tuesday. Innscor’s retail and distribution arms, Distribution Group Africa, TV Sales and Hire and Transerv, will now fall under Axia.
Innscor chairman Addington Chinake said Axia’s unbundling and listing as a standalone will enable Innscor to capitalise on its achievements to date and to benefit from renewed and specific focus.
The Axia unbundling leaves Innscor as a fully-fledged light manufacturing company after it shed off its fast foods business unit last November, which it listed separately as Simbisa Brands. It will also become the group’s second spin-off since chief executive Toni Fourie was appointed in 2014 to spearhead the group’s restructuring drive.
The unbundling will be effected through distribution of the entire issued share capital of 541 593 440 ordinary shares of nominal value $0.0001 in Axia to shareholders of Innscor registered as such at the end of business on May 6 2016 through a dividend in specie.
The dividend in specie shall be on the basis of one ordinary share in Axia for every one existing Innscor ordinary share held on the record date.
As at 31 December 2015, Innscor’s retail and distribution business had an asset base $103 million against total liabilities of $51 million.
In the six months to 31 December, the business reported $104 million in revenue and an after tax profit of $9 million. It generated cash amounting to $2.2 million from operations.
Luke Ngwerume will lead the Axia board as non-executive chair. Other members include John Koumodies as the chief executive and Ray Rambanapasi as finance director.
Zinona Koudounaris, Thembiwe Mazingi, Thembinkosi Sibanda will also sit on the board as non-executive directors.-The Source