Simbisa postpones LSE listing

Simbisa postpones LSE listing
Published: 30 September 2018
SIMBISA Brands has postponed its planned secondary listing on the London Stock Exchange (LSE)'s Alternative Investment Market (AIM) to a later date.

The country's largest fast-food restaurant operator proposed to list in the United Kingdom a year ago, but the deal is yet to be finalised due to regulatory issues.

Addington Chinake, Simbisa chairman, yesterday said the company remains committed to joining AIM – a sub-market of the LSE designed to help smaller companies access capital from the public market.

"Following the approval by the shareholders of Simbisa at an extraordinary general meeting held on March 21, 2018 of the dual listing of the company by way of secondary listing on the AIM segment of the London Stock Exchange and the acquisition of 50 percent of Foodfund, shareholders are advised that the board has resolved to postpone the secondary listing on the London Stock Exchange to a future date," he said.

Chinake advised shareholders that parties to the sale of agreement to Foodfund have agreed that the acquisition as presently structured be amended due to the postponement of the secondary listing.

Simbisa listed on the Zimbabwe Stock Exchange (ZSE) in November 2015 after being spun off from manufacturing group Innscor Africa.

Meanwhile, the country's largest fast-food restaurant operator reported a 113 percent increase in profit before tax to $20,11 million for the year ended June 30, 2018.

Revenue increased 33 percent to $204,72 million from $154,14 million attributed to organic growth in Zimbabwe and Kenya.

Operating profit increased 60 percent to $28,07 million compared to $17,54 million reported in the previous comparable period.

Chinake said economic reforms will pave way for new opportunities in the country.

"I am optimistic that a stabilisation in the socio-political environment and impending economic reform in the wake of elections in Kenya and Zimbabwe will pave way for continued growth and new opportunities in these two markets," he said.

Assets increased 15 percent to $84,844 million in the period under review compared to $73,466 million in the previous comparable period.

Simbisa added new dining brands to its portfolio in the period under review, including RocoMamas and Ocean Basket.

Simbisa owns some of Zimbabwe's most well-known restaurant chains, including Pizza Inn and Chicken Inn, as well as franchises for Nandos and Steers of South Africa.

The company has outlets in 11 African countries, including Kenya, Ghana, Mauritius and Zambia.
- fingaz
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