https://www.engineeringnews.co.za
Africa|Business|Sustainable|Products
Africa|Business|Sustainable|Products
africa|business|sustainable|products

Libstar disposes of 70% interest in household, personal care businesses

21st February 2022

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

Font size: - +

JSE-listed packaged goods company Libstar will dispose of a 70% equity interest in its household and personal care businesses, comprising the Contactim and Chet Chemicals divisions, for R174.6-million.

"The transaction serves to amplify Libstar’s strategic intent to focus and grow its existing food categories, while transitioning its non-food division to a sustainable, transformed standalone business in partnership with the buyers, private equity fund manager PAPE Fund Managers and Kanaka Chemical."

Libstar is a producer and distributor of more than 9 000 products and brands for the consumer packaged goods industry in South Africa and internationally. More than 90% of group revenue is generated from food, which includes dairy and value-added meat products, fresh produce, convenience food, groceries, baking and baking aids, snacks and confectionery.

Further, a put and call option, exercisable by Libstar and the buyers, respectively, between December 31, 2023, and June 30, 2024, will be entered into in relation to Libstar’s remaining 30% interest in the household and personal care businesses.

The price at which the option may be exercised is based on the same valuation that was used to calculate the purchase consideration for the initial 70% equity interest to be acquired by the buyers, less a discount of 20%, being an amount of R42.72-million. The total purchase consideration, including the price payable in terms of the option, is therefore R217.32-million.

Additionally, the transaction envisages a new company being established to acquire the entirety of the household and personal care businesses as going concerns from Libstar, the company says.

The new company intends to fund a portion of the purchase consideration by raising new bank debt of about R50-million. The purchase consideration payable by the buyers for 70% of the equity in the new company will be R124.6-million.

The value of the net assets being disposed of is R312-million and the loss before tax attributable to those net assets is R64-million. The implementation of the transaction is subject to the fulfilment or waiver by no later than June 30, of conditions precedent for the transaction, Libstar says.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:24.368 24.47s - 139pq - 2rq
Subscribe Now