| Mon 31 Oct 2011, 10:21 | | CBH - Country Bird Holdings Limited - Country Bird Holdings repays |
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CBH
CBH
CBH - Country Bird Holdings Limited - Country Bird Holdings repays
shareholder loan
Country Bird Holdings Limited
(Incorporated in the Republic of South Africa)
(Reg. no 2005/008505/06)
Share Code: CBH ISIN: ZAE000094835
COUNTRY BIRD HOLDINGS REPAYS SHAREHOLDER LOAN
Country Bird Holdings (CBH) has repaid a R200 million loan from its
major shareholder, Synapp International. The loan was advanced in 2008
at a time when CBH bought out the remaining 50% in animal feeds company,
Nutri Feeds. It enabled the company to operate without the restrictive
covenants of commercial banks at the time and facilitated CBH`s
positioning to become the fully integrated poultry producer that it is
today.
Following the financial year ended June 2011, in which substantial cash
was generated and the group`s ratios improved significantly, CBH was in
a position to approach Investec and obtain replacement funding for the
Synapp loan, bringing all borrowings into commercial lending
institutions.
The replacement loan from Investec is for a five-year term at an
interest rate lower than prime, with commercially negotiated security
provisions.
Commenting on this development, group financial director Robbie Taylor
says, "There were background concerns that the Synapp loan would be
converted to equity through a share issue, which created unease amongst
some minority shareholders. This was despite the fact that we were at
pains to explain that it was never the intention of Synapp to follow
that route. Therefore, we are really pleased at repaying the loan and
removing that uncertainty. However, I cannot over-emphasise how
important the Synapp loan has been to the group."
Ends/
About Country Bird Holdings Limited (CBH)
CBH, which listed on the JSE in May 2007, is an agricultural group
comprising integrated poultry, stock feed and beef businesses in South
Africa, trading as Supreme Poultry, Nutri Feeds and Long Iron Meats
respectively, as well as poultry breeding, broiler and stock feed
operations in the southern African region, trading as Ross Africa and
Master Farmer. CBH is currently active in South Africa, Botswana and
Zambia.
Issued for: Country Bird Holdings Limited (CBH)
Contact: Robbie Taylor, Group Financial Director: 011 268 5891 / 082
809 9506
Fax No: 011 268 5894
Email: Robbie@countrybird.co.za
Website: www.cbh.co.za
Issue by: CBH Corporate and Investor Communications
Contact: Tish Stewart: 082 4436399 / 011 442 5536
Fax No: 011 447 9317
Email: tishstewart@mweb.co.za
Date: 31 October 2011
Sponsor:
Investec Bank Limited
Date: 31/10/2011 10:21:02 Produced by the JSE SENS Department.
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