BidCorp executive chairperson Brian Joffe
Photo by: Duane Daws
As international services, trading and distribution firm Bidvest worked to spin off its food services unit, the new Bid Corporation (BidCorp) planned to make its JSE debut on May 30.
In a transaction valued at R2.8-billion, Bidvest planned to dispose of all of the shares in Bidvest Food Africa, Bidvest Food Properties and the Bidvest treasury shares to its wholly-owned subsidiary Bidvest Foodservice prior to the listing of BidCorp.
The separation of Bidvest into diversified industrial group Bidvest Industrial and global food service business Bidvest Foodservice had been a “natural progression” over many years, as the businesses had divergent strategic focuses and required different management skills.
“A clear separation of interests will provide for greater management focus and enable management to identify opportunities both locally and abroad, thereby increasing the scope for entrepreneurial flair,” Bidvest said in a statement on Thursday.
The proposed unbundling would position BidCorp into a fit-for-purpose, more sustainable global food service operation, with streamlined activities and operations that improved the platform from which to pursue continued growth.
“BidCorp’s improved management focus will enable it to more readily identify acquisition opportunities both locally and abroad and mitigate and manage risks and challenges specific to its business,” BidCorp said in its prelisting statement.
“BidCorp will focus on realising the potential that exists in its current food service operations, as well as acquisitive growth opportunities.”
The members of BidCorp’s board included executive chairperson Brian Joffe, CEO Bernard Berson, CFO David Cleasby, lead independent nonexecutive director Douglas Band and independent nonexecutive directors Cecelia Phalatse, Paul Baloyi, Nigel Payne and Helen Wiseman.
The implementation of the unbundling remained subject to conditions and a shareholder general meeting would be convened on May 16.