Innscor to list restaurants unit as Simbisa

Business Reporter
INNSCOR Africa will list its Quick Service Restaurants business on the stock exchange under the name Simbisa Brands Limited, the group said in its pre-listing statement. Simbisa operates leading brands Chicken Inn, Pizza Inn, Creamy Inn, Bakers Inn, Fish Inn, Galito’s Africa, Nando’s, Steers and Vida E Caffe and delivery service, Dial-a-Delivery.

Galito’s Africa, Nando’s, Steers and Vida E Caffe (Mauritious) are run on a third part franchise basis. The QSRs business represented 8 percent of the expansive group’s net asset value, 19 percent of the revenue and 28 percent of earnings before tax depreciation and amortisation in the group’s recent results.

The Zimbabwe Stock Exchange has already approved the listing statement and the listing of the entire issued share capital of Simbisa meant to unlock a number of benefits. Innscor said the QSRs business operated a total of 388 outlets as at August 31, 2015.

The unbundling of the business from the group, subject to approval by shareholders, will unlock value, enhance its ability to pursue strategies that optimise value, offer choice to investors, create financial and autonomy and direct access to capital.

It is envisaged the separation will enhance transparency for the company, independent reporting to shareholders; allow for more accurate valuation of the business and also enable it to pursue mergers and acquisitions with complementary entities.

Innscor shareholders will meet on November 2, 2015 at an extraordinary general meeting to consider and if deemed fit, to approve without amendments the listing and its terms. It is anticipated that barring unforeseen circumstances, the newly created unit’s issued shares will start trading on the domestic stock market on the 6th of next month.

The transaction will be effected through distribution of the issued share capital of 541 593 440 shares of nominal value $0,0001 through a dividend in specie to Innscor shareholders. Holders of Innscor will receive one ordinary share in Simbisa of nominal value for every Innscor share. Simbisa will be listed on the ZSE by way of introduction, Innscor said.

Major shareholders as of September 2015 were ZMD Investments (18,99 percent), HM Barbour Pvt Limited (18,46 percent), Old Mutual Life Assurance (6,3 percent) and Sarco Investments (4,15 percent). However, Simbisa will have 999 999 000 ordinary shares of nominal value $0,0001 per share and 1000 class A (non-voting ordinary shares) of nominal value $0,0001 each.