| Mon 29 Nov 2010, 7:45 | | CLR/CLRP - Clover to list on the JSE on 14 December 2010 |
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JSE
CLOV
CLR/CLRP - Clover to list on the JSE on 14 December 2010
Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
JSE Ordinary share code: CLR ISIN: ZAE000152377
JSE Preference share code: CLRP ISIN: ZAE000152385
("Clover" or "the Company" or "the Group")
CLOVER TO LIST ON THE JSE ON 14 DECEMBER 2010
Up to R500m private placement
29 November 2010 - Clover, a leading branded consumer goods and beverages group
operating in South Africa and other selected African countries, is expected to
list on the securities exchange operated by the JSE Limited ("JSE") on Tuesday,
14 December 2010. The Company will list its ordinary shares under the share code
"CLR" in the "Food Producers" sector of the JSE Main Board and its preference
shares in the preference share sector of the Main Board under the share code
"CLRP".
The listing will be in conjunction with an offer to raise up to R500 million
(excluding the overallotment option) by way of a private placement of new
ordinary shares in the Company`s issued share capital with institutional
investors, selected other investors, management and existing ordinary
shareholders. Rand Merchant Bank, a division of FirstRand Bank Limited, is the
lead advisor and bookrunner for the offer.
The offer price for the shares will be between R9.00 and R12.00 per share. The
final price will be determined following the conclusion of the offer and is
expected to be announced on SENS on Thursday, 9 December 2010. The net proceeds
of the offer of ordinary shares will be used to fund the Company`s capital
projects, working capital and for general corporate purposes.
Clover`s primary capital project, Project Cielo Blu, aims to redress historical
inefficiencies in the supply chain, increase profitability and expand capacity
to support current and future growth plans through the relocation of production
facilities closer to milk sources in order to reduce distribution and related
costs as well as the expansion of key production and distribution centres and
warehouses to create sufficient capacity to support current and future medium-
term growth.
Clover Chief Executive, Johann Vorster, commented: "I look forward to welcoming
new shareholders through this listing and capital raising. We have a clearly
defined strategy to expand the business and the listing represents a major
milestone in positioning Clover for its next growth phase."
Clover has been operating since 1898 and has enjoyed a long and successful
history as part of the development of South Africa`s dairy and Fast Moving
Consumer Goods industry. Clover was converted from a co-operative society into a
public company in 2003 and both its ordinary and preference shares currently
trade on an over the counter market facilitated by the Company. On Monday 29
November 2010, Clover intends to suspend trading in the ordinary and preference
shares on the over the counter market in order to facilitate the migration of
trade to the Main Board of the JSE and the offering of new ordinary shares.
Clover`s financial performance is already benefitting from its alignment
strategy and capital restructuring. Despite higher raw milk costs, the Company`s
gross margin increased from 26,3% to 27,8% for the financial year to 30 June
2010. Contributing factors included an improved product mix, reduced production
and packaging costs and fixed cost cutting initiatives. The Company reported an
operating profit adjusted for exceptional items of R320,8 million (2009: R48,6
million) for the year.
"Clover`s brand, market position and expertise across the supply chain will be
significantly strengthened through Project Cielo Blu which will see production
facilities move closer to the source and our extensive distribution platform
expanded further. These initiatives will save costs, eliminate bottlenecks in
the supply chain and create significant growth opportunities through selective
access to new markets," concluded Johann Vorster.
The Company`s prelisting statement was published today and is available on the
Company`s website www.clover.co.za. However, it should be noted that the offer
is not open to the general public.
ENDS
ENQUIRIES
Clover Industries Limited +27 (0) 11 471 1702
Johann Vorster - Chief Executive +27 (0) 82 462 0083
Manie Roode - Deputy Chief Executive +27 (0) 82 466 7848
College Hill +27 (0) 11 447 3030
Frederic Cornet +27 (0) 83 307 8286
Morne Reinders +27 (0) 82 815 1844
Date: 29/11/2010 07:45:01 Produced by the JSE SENS Department.
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