Simbisa garners for UAE fast food chain

Simbisa garners for UAE fast food chain
Published: 19 February 2018
THE Zimbabwe Stock Exchange-listed quick service operator, Simbisa Brands, is seeking to acquire the United Arab Emirates-based fast food group, Foodfund.

Last month, Simbisa also announced that it was seeking regulatory approval for secondary listing on the London Stock Exchange, the Alternative Investment Market (AIM), as part of its capital raising initiative. Simbisa Brands is a subsidiary wholly-owned by a giant Innscor Africa Group.

"At the meeting held on July 21, 2017, the board of directors of Simbisa considered and identified a potential opportunity for the acquisition of Foodfund.

It was undertaken to conclude the transaction in lieu of its shares.

"Subsequent to this meeting, the board of directors held a second meeting on Friday 12 January 2018 where they resolved to utilise a maximum of 198.6 million of the new shares issued listed on AIM as consideration for the acquisition," said Simbisa in a latest circular to shareholders.

The restaurant business intends to issue 75 million new shares through an Initial Public Offering (IPO) on AIM and to acquire Foodfund shares in exchange for an issuance of some of the new Simbisa ordinary shares listed on the London stock exchange.

The quantum of shares issued, pricing and exact amount of capital raised will be determined by market sentiment and economic conditions upon IPO.

"The capital raised through the IPO will be used to fund regional expansion activities through a combination of capital expenditure in existing regional markets and identifying new acquisitions," it said.

"Up to 198.6 million Simbisa ordinary shares will be issued to the sellers as settlement for the acquisition of Foodfund in accordance with the terms and condition of the sale and purchase agreement."

Foodfund is a family-owned and operated business incorporated in the United Arab Emirates, the British Virgin Islands and South Africa, with a footprint across the globe.

Its portfolio presently includes 17 outlets operating under eight independent food and beverage brands situated in Europe, Middle East, South Africa and United Kingdom.
- online
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