| Mon 16 Apr 2007, 17:00 | | CBH - Country Bird Holdings Limited - Intention to |
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JSE
CBH
CBH - Country Bird Holdings Limited - Intention to list on the JSE Limited
COUNTRY BIRD HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/008505/06)
JSE share code: CBH & ISIN: ZAE000094835
("CBH" or "the company")
(Previously AFRICA`S BEST 339 LIMITED)
Country Bird Holdings Limited - Intention to list on the JSE Limited
("JSE")
1. Nature of business
1.1 Nature of business and background
CBH is a holding company incorporating large integrated poultry and
stock feed business operations in South Africa operating as Supreme
Poultry (Proprietary) Limited ("Supreme") and Nutri Feeds
(Proprietary) Limited ("Nutri Feeds") and poultry breeding operations
in the region operating as Ross Africa. CBH currently operates in
South Africa, Botswana and Zambia.
- Supreme
Supreme is the third largest poultry producer in South Africa, with a
market share of approximately 10%*. It provides a complete range of
fresh and frozen products which are distributed nationally and employs
3 500 people.
* The market information on Supreme was obtained from SAPA.
- Nutri Feeds
CBH owns 50% of Nutri Feeds which has feedmills in Viljoenskroon,
Bloemfontein and Mafikeng. It currently produces 340 000 tons per
annum which will be expanded to 660 000 tons per annum.
- Ross Africa
Alpha Marketing Limited ("Ross Africa") has been afforded the rights
to produce and market the Ross Genetics package in sub-Saharan Africa
(excluding South Africa) and currently owns 100% of a grandparent
breeding operation in Zambia ("Ross Zambia") and 60% of a parent
breeding operation in Botswana ("Ross Botswana"). Ross Zambia has a
50% market share in Zambia producing 165 000 day old chicks per week
and producing parent day old chicks for its own consumption as well as
for exports regionally. Ross Botswana is the only poultry breeding
operation in that country with a market share in excess of 60%,
producing 240 000 day old chicks per week.
The management team of CBH has extensive operational, technical and
financial experience of the poultry industry in sub-Saharan Africa,
supported by well established management teams at each of the operating
subsidiary companies.
1.2 Future prospects and strategy
- Growth in Poultry Consumption
There has been a substantial shift in consumption from beef to
poultry. Statistics show that from 1960 to 2005 in South Africa,
the annual consumption per capita of beef has dropped from 26kg
to 13kg, whilst that of poultry has increased from 2.5kg to
22.4kg over the same period. The emergence of a stronger middle
class consumer is also driving demand for chicken as these
consumers shift their consumption to chicken and therefore as
South African consumers continue to increase their consumption of
chicken there will remain strong demand in the local economy and
Supreme expects to sell its additional production volumes into
this market.
- Growth in Animal Feeds
The growth in poultry consumption outlined above, will drive
demand for animal feed products. Due to improved procurement
practices and enhanced economies of scale Nutri Feeds should
improve the net margin achieved on feed sales.
Due to the location of the company`s feed milling operations,
opportunities exist for exports to neighbouring countries.
- Expansion in Africa
As a result of the improving economies of many countries within
sub-Saharan Africa, prospects exist for growth within existing
operations via increased exports whilst new operations may be
established in territories where Ross rights have been awarded.
- Protein Diversification
CBH has recently acquired an interest in the assets of a beef
processing plant (trading as Klerksdorp Abattoir) as part of its
longer term vision of becoming a leading player in the broader
protein production industry.
CBH will actively pursue acquisitions where synergies exist both
within its core business and longer term vision.
2. The Offer
The offer comprises of a private placing by Synapp International
Limited ("Synapp") by way of an offer for sale of 65 484 760 shares,
at a price of between R4.85 and R5.35 per CBH share ("offer price"),
to:
- institutional investors in South Africa; and
- the private clients of selected stock broking companies in South
Africa,
("the offer").
The offer is conditional on:
- the listing of all the issued CBH shares on the JSE; and
- the disposal of a minimum of 37 419 863 shares in terms of the
private placing,failing which the offer and any acceptance
thereof shall not be of any force or effect and no person shall
have claim whatsoever against Synapp or any other person as a
result of the failure of any condition. JSE approval of the
listing is conditional on the attainment of the required spread
of shareholders.
The final offer price will be determined as part of a "book-build"
process in terms of the private placement.
CBH will have 187 099 313 CBH shares in issue at the date of listing.
3. Summary of the offer salient dates
2007
Opening date of the Offer (09:00) 17 April
Indications of interest for purpose of the 24 April
bookbuild received up until 17:00
Closing Date of the Offer (12:00) 25 April
Successful applicants advised of 25 April
allocations
Public holiday in South Africa 27 April
Payment received 30 April
Public holiday in South Africa 1 May
Abridged Pre-listing statement with offer 3 May
price announced on SENS
Proposed Listing Date on the JSE 3 May
Abridged Pre-listing statement with offer 4 May
price published in the press
All times and dates are subject to change. Any changes will be published in
the press and on SENS.
4. Directors
Name, age and Business address Occupation/
nationality function
Bryan Hugh Kent (61) 32 Humewood Links, Chairperson (Non-
South African River Club, 2149 Executive)
Carl Dennis Stein (52) 165 West Street, Director (Non-
South African Sandton, 2196 Executive)
Kevin William James Unit 16, Block 76, Chief Executive
(52) Silver Lakes Drive, Officer
Zimbabwean Tiger Valley Office
Park, Tiger Valley,
Pretoria, 0054
Geoffrey Philip Heath Unit 16, Block 76, Group Financial
(53) Silver Lakes Drive, Director
British Tiger Valley Office
Park, Tiger Valley,
Pretoria, 0054
5. Pre-listing statement
The Pre-listing statement will be issued on Monday, 16 April 2007.
Copies of this Pre-listing statement may be obtained from the
corporate office of CBH, the sponsors or transfer secretaries, at the
addresses detailed below from Tuesday, 17 April 2007:
CBH Investec Corporate Computershare
Unit 16, Block 76 Finance Investor Services
Silver Lakes Drive Second Floor 2004 (Pty) Ltd
Tiger Valley Office 100 Grayston Drive Ground Floor
Park Sandown 70 Marshall Street
Tiger Valley Sandton Johannesburg
Pretoria 2196 2001
0054
Johannesburg,
16 April 2007
Bookrunner, investment Attorneys Auditors and reporting
bank and sponsor accountants
Investec Corporate Smith Tabata Buchanan PricewaterhouseCoopers Inc
Finance Boyes Inc
Date: 16/04/2007 17:00:00 Produced by the JSE SENS Department.
