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Joffe lists new venture on JSE

28th April 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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Well-known business personality Brian Joffe, who emerged from retirement in pursuit of a new business opportunity, listed his latest venture, Long4Life, on the main board of the Johannesburg bourse earlier this month.

Known as the ‘sage of Johannesburg’, Joffe, who recently stepped down from Bidvest and Bidcorp, marked the start of trading for the lifestyle investment company with the blowing of the traditional Kudu horn and a foundation of R2-billion – R100-million of which was his own capital.

“Today is a new chapter,” Joffe told investors at the JSE during the listing, which was “put together” in less than two months after he got “bored of retirement” after two to three months and launched his new “long-term game”.

“This is not a one-day game,” he assured investors, highlighting the prudence that will be taken with Long4Life’s investment strategy.

Joffe had subscribed for 25-million shares at R4 apiece, while anchor investors subscribed for 100-million shares at R5 apiece, equating to R500-million. Undisclosed committed investors subscribed for an aggregate 280-million shares, also at R5 a share, netting gains of R1.4-billion.

At the sounding of the horn, the company attracted the first 5 000 share trades at R6 apiece, growing rapidly a few minutes after opening of the trade. By midmorning, the new company’s share price had spiked nearly 15%.

With no additional capital needed, the company will focus on medium- to long-term investments in companies within the lifestyle sectors, including those in the beauty and outdoor and sport sectors, as well as retirement villages and restaurants, besides others, with an eye on beauty therapy hub group Sorbet, at the outset.

Long4Life is currently in discussion with the shareholders of Sorbet to acquire the entire issued share capital for a consideration not exceeding R130-million, settled in cash and shares at the issue price of R5 a share.

In Long4Life’s prelisting statement, it outlined its confidence in the significant scale and scope of opportunities that exist in the market segment being targeted, with a number of opportunities identified that “appear to meet and further” its investment strategy.

“It is a very interesting space,” he said.

Initially, investments will be South Africa-specific, with “global ambitions over time”, while the company’s investment portfolio may comprise fewer than ten investments at any given time.

Entrepreneurial opportunities will also be considered.

While the group aims to obtain exposure to a diversified pool of listed and unlisted assets, the banking, mining and resources segments are not targets.

The company’s medium- to long-term ambition is to achieve sustained growth in excess of 15% a year, which chairperson Graham Dempster said would double the value of the company within four years.

“This is an opportunity for us to do something extraordinary,” he said.

To maximise the return on its unused cash, Long4Life aims to invest these funds in a prudent combination of bank deposits, short-duration high-quality bonds and suitable short-term money market instruments.

Meanwhile, Long4Life has appointed Peter Riskowitz CFO and executive director effective May 1.

Other independent nonexecutive directors include Tasneem Abdool-Samad, Lionel Jacobs and Colin Datnow, with Jason Joffe as alternate director.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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