John Daniel unwraps Vinguard listing terms
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Trade and Industry Editor
JSE Securities Exchange SA-listed investment holding group John Daniel released details yesterday of an initial public offering for its Vinguard subsidiary, which makes sheets to preserve table grapes for eating.
The group will use the funds raised through the offering to commercialise Vinguard`s operations. Vinguard manufactures a sulphur dioxide gas-generating sheet that is used to prolong the shelf life of table grapes, particularly during prolonged storage periods when grapes are exported to foreign markets.
John Daniel, which reverse-listed into failed E-Data last year, invests in technologies with the aim of commercialising them.
Vinguard will go public through a preferential offer of 7-million shares to table grape farmers, and a public offer of a further 7-million shares to John Daniel Holdings shareholders at 65c a share.
The offer also contains details of a further private placing of an additional 5million shares to Mondi at an issue price of 60c a share. Mondi already owns about 11,5% of Vinguard, and the new placing will push the paper and pulp company`s shareholding up to 15%.
Vinguard MD Willem Opperman said the company had been inundated with enquiries since announcing its intention to sell shares in the unit.
The technology was developed at the University of Stellenbosch over seven years and was funded mainly by the Deciduous Fruit Producers Trust, which has also retained a shareholding in Vinguard.
Vinguard acquired the rights to the technology last year.
A spokesman for John Daniel, Harry Minnie, said the existing Vinguard plant sold sheets to several large grape farmers at the moment. The plant would be expanded to meet local demand, while exports would be considered in three years` time, he said.
Vinguard would launch the public offer through an electronic platform, Opperman said. `We aim to get information to the market in real time.` Printed versions will be available from stockbrokers next week.
Separately, John Daniel recently announced its plan to enter the controversial field of human stem cell research.
The group said it was looking to acquire a stake in Bioco, the first domestic commercial biotechnology company to venture into this field.
Proponents say stem cells, harvested from the umbilical cord, repair the body, replenishing other cells .
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