The board of directors of JSE-listed Pioneer Foods on Thursday resolved to proceed with the unbundling of Quantum Foods and to list it as a separate entity on the JSE on October 6.
Pioneer said it would unbundle the Quantum shares to its ordinary shareholders by way of a dividend-in-specie in the ratio of one Quantum share for every Pioneer share held on October 10, and to its Class A ordinary shareholders in the ratio of 0.3 Quantum shares for every one Class A ordinary share held in Pioneer on the unbundling record date.
Pioneer initiated the restructure of its portfolio a year ago and had refocused to become a branded consumer products business, which did not include primary agriculture.
Quantum Foods, which comprised three integrated business units that produce eggs, chicken products, animal feed and commercial laying hens, had been operating as a standalone business within Pioneer for several years.
Pioneer believed the unbundling of Quantum would have several positive outcomes, including enabling Quantum to develop a shareholder base that has an appetite for a protein food production business with an expansion drive on the African continent.
The unbundling and subsequent listing would allow Quantum to pursue a focused strategy and enter into strategic relationships without having to consider the impact on the Pioneer Foods group, while developing its own management style and culture.
Further, Quantum would now have direct access to debt capital and equity markets.
It was in a position to grow its feed, layer livestock, egg and Gauteng broiler business with limited capital expenditure (capex).
Quantum was said to be adequately capitalised and had largely completed its domestic capex programme.