Ruling gives Steers Pleasure
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KwaZulu-Natal Correspondent
DURBAN The Competition Commission yesterday approved Steers Holdings' R150,6m acquisition of Pleasure Foods, establishing the fast food group as the largest quick-service restaurant franchise chain in Africa.
Steers will finance the venture through cash reserves and debt finance. Chief operating officer Kevin Hedderwick believed the debt would be repaid inside five years.
The acquisition becomes effective from December, meaning there will be a marginal impact in the current year.
The Steers group has raised R95m as medium-term finance and allocated R35m to be raised via a vendor consideration placing of 22,5-million shares at 155c each.
The remaining R20,6m will come from cash resources and the move pushes the Steers gearing to 90%.
Hedderwick said the acquisition fulfilled the strategic intent initiated several years ago for Steers to become the leading franchisor in Africa and unlock shareholder value.
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