PFG - Pioneer Foods - Renewal of Cautionary Announ
PFG
PFG
PFG - Pioneer Foods - Renewal of Cautionary Announcement - Proposed B-BBEE
Transaction
PIONEER FOOD GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1996/017676/06)
JSE share code: PFG
ISIN: ZAE000118279
("Pioneer Foods" or "the Company")
RENEWAL OF CAUTIONARY ANNOUNCEMENT - PROPOSED B-BBEE TRANSACTION
Shareholders are referred to the cautionary announcement published on 4 August
2011 as well as the renewal of the announcement on 19 September 2011.
The Company concluded a B-BBEE transaction with its employees in 2006 which
effectively equated to 10% black ownership of the Company at the time.
Pioneer Foods now proposes to increase and broaden the black ownership of the
Company to include a broad-based Educational and Community Trust, strategic B-
BBEE partners and black members of the board of the Company ("proposed B-BBEE
transaction").
The proposed B-BBEE transaction will be implemented by way of vendor and third
party finance, pursuant to which the B-BBEE shareholders will acquire a direct
equity interest in the Company of approximately 13.5% at market related values.
Third party BEE parties will be issued 8.5% and a broad-based Educational and
Community Trust approximately 5%. Finalisation of funding is at an advanced
stage.
Following the implementation of the proposed B-BBEE transaction, the Company
will have an effective black ownership of more than 18.5% (including the initial
Pioneer Foods employees` scheme) as measured in terms of the dti Codes of Good
Practice on Broad Based Black Economic Empowerment.
The proposed B-BEE transaction will be subject to various conditions including
shareholder approval. Further details including salient dates and the pro-forma
financial effects will be announced in due course, once finalised.
Shareholders are accordingly advised to continue to exercise caution when
dealing in the Company`s securities until a final announcement is made.
Paarl
3 November 2011
Sponsor
PSG Capital (Pty) Limited
Date: 03/11/2011 09:03:28 Produced by the JSE SENS Department.
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