by Renee Bonorchis and Ana Monteiro
(Bloomberg) – Consol Holdings Ltd., the glass-packaging maker that last traded on Johannesburg’s bourse more than a decade ago, said it’s plotting a return and is seeking to raise R2.7 billion ($227 million).
Consol delisted in 2007 after a group of private-equity investors led by Brait SE took it private. Consol’s return, mooted for at least three years, previously faced uncertainty amid South African political turmoil and slowing economy. Under new President Cyril Ramaphosa, who has promised to tackle corruption and clarify policy, the rand has strengthened and business confidence is rising.
Consol, which has operations in South Africa, Kenya and Nigeria, will use the money raised by listing to strengthen its balance sheet, it said in a statement Thursday, without detailing when trading will begin. For the six months ended December the glass manufacturer’s adjusted earnings before interest, taxes, depreciation and amortization rose 4.5 percent to 936 million rand.
Brait, the South African investment company that also owns U.K. clothing retailer New Look and gym chain Virgin Active, reported a first-half loss in November after New Look suffered from a combination of difficult market conditions and a “number of self-inflicted issues.” With the retailer being forced to close stores and slash rents to survive, the Consol listing will allow Brait to boost its capital.
Brait shares climbed 1.2 percent to R36.46 as of 10:16 a.m. in Johannesburg.
Banks Appointed
The share offer will be made to selected investors and won’t be available to the public, Consol said in the statement. Some of the proceeds will be used to repay a portion of the group’s shareholder loans and the balance of those loans will be converted to equity upon listing, it said.
Merrill Lynch International, Goldman Sachs International, FirstRand Ltd.’s investment banking unit and Standard Bank of South Africa Ltd. have been appointed as joint global coordinators for the listing.
