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Naspers prepares investors for global listing

Markets BizNews.com

Internet giant Naspers aims to list its international internet assets on Euronext Amsterdam stock exchange on 11 September.
'*This content is brought to you by  Naspers The internet giant aims to list its international internet assets on Euronext Amsterdam on 11 September. Naspers shareholders get to vote next month on the internet giant’s plan to list its international business on the Euronext Amsterdam stock exchange. It posted a circular to shareholders on Friday convening a general meeting for 23 August. The general meeting was postponed last month due to a postal error , which resulted in the circular to some shareholders being labelled with the wrong addresses. It will now be held directly after its annual general meeting in Cape Town, giving shareholders enough time to fully consider the circular and the resolution needed to implement the transaction. It had planned to list NewCo on Euronext on 19 July but is now aiming for a September 11 listing. The global business, which will be called Prosus , will include all the group’s internet assets outside of SA, including its companies and investments in the online classifieds, payments and fintech, food delivery, e-tail, travel, education, and social and internet platforms sectors, among others. It says assets including  mail.ru , OLX, Avito, letgo, PayU, Tencent, iFood, Swiggy, DeliveryHero, Udemy, eMAG, and MakeMyTrip are some of the world’s leading and fastest-growing internet brands. It will also include its 31% stake in Chinese internet giant Tencent. It expects Prosus to become the largest listed consumer internet company by value in Europe. Naspers will retain at least 73% of the business, giving it a free float of up to 27% that it believes will attract more investors. Prosus will have a secondary listing on the JSE, while Naspers will retain its primary listing on the JSE , with direct stakes in Takealot and Media24, alongside its majority stake in Prosus. By separating its businesses, the group hopes to narrow the discount Naspers shares trade at relative to the value of its assets and also reduce its outsized weighting on the JSE, where it up makes up almost a quarter of the shareholder-weighted SWIX index. It said the listing would help maximise shareholder value over time. Following the delay to the original timing, I am pleased that the listing of Prosus is on track to be completed in September,”  group CEO Bob van Dijk said. “It’s a significant step for Naspers and will present a new opportunity for global internet investors to access our unique portfolio of international internet assets, with incremental investment creating a strong platform for our future growth ambitions.” Shareholders will receive shares in the new company or can choose to receive more shares in Naspers instead, subject to certain limits.'

PepsiCo in $1.7bn acquisition of Pioneers Foods; owner of Sasko, Ceres and Weet-Bix

Markets BizNews.com

PepsiCo has entered into an agreement to acquire all the outstanding shares of Pioneer Foods for R110 per share in cash (approximately $1.7bn).
'Pioneer Foods/PepsiCo media statement PepsiCo, Inc. (NASDAQ: PEP) (“PepsiCo”) today announced that it has entered into an agreement to acquire all the outstanding shares of Pioneer Foods Group Ltd. (JSE: PFG) (“Pioneer Foods”) for R110 per share in cash (approximately $1.7bn), which represents a 56% premium to the 30-day volume weighted average price prior to the cautionary announcement on July 15, 2019. Pioneer Foods has a robust, locally relevant product portfolio that complements PepsiCo’s current lineup, with strong positions in cereals, juices, and other African nutritional food staples, including well-known, scaled brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star. At the same time, this acquisition will help PepsiCo gain a solid beachhead for expansion into Sub-Saharan Africa by boosting the company’s manufacturing and go-to-market capabilities, enabling scale and distribution. Finally, this transaction brings together two likeminded companies, with both Pioneer Foods and PepsiCo aligned around a vision for building a more sustainable future and investing in communities. With Pioneer Foods, PepsiCo adds an extraordinary team of associates who will be instrumental to growth across the continent. “As we look to accelerate our growth in key markets around the world and achieve our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose, we are absolutely thrilled to join forces with Pioneer Foods, one of South Africa’s leading food and beverage companies,” said PepsiCo Chairman and CEO, Ramon Laguarta. “Pioneer Foods represents a differentiated opportunity for PepsiCo and allows us to immediately scale our business in Africa. Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well. Our businesses are highly complementary, and we look forward to working with the Pioneer Foods team to successfully build and implement a shared vision in the region.” This transaction creates a leading food and beverage company in Africa led from South Africa, with a commitment to supporting the broad socioeconomic imperatives of employment, talent development, and benefiting local suppliers. It will enable PepsiCo to expand its Sustainable Farming Program in Africa and work with local farmers in Pioneer Foods’s communities – including women and rural smallholders – to help boost yields, improve livelihoods, and preserve precious natural resources. PepsiCo is keenly aware of the importance of economic transformation through Broad-Based Black Economic Empowerment (“BEE”) and intends to support Pioneer Foods’ BEE program. “Today’s announcement marks a very exciting milestone for Pioneer Foods and our people, and highlights the strength of what we have created,” said Tertius Carstens, CEO of Pioneer Foods. “As part of PepsiCo, we will have greater scale to expand our leading brands, greater capital to invest in local agriculture and people, greater access to leading global capabilities and a partner committed to taking our company to even greater heights.” As part of this transaction and PepsiCo’s goal to become faster and more locally focused, the company will create a new operating sector for Sub-Saharan Africa (“SSA”). PepsiCo SSA will be led by Eugene Willemsen, who most recently served as Executive Vice President of Global Categories & Franchise Management. Willemsen, who has been with PepsiCo for nearly 25 years, has extensive experience in growth markets, having previously led our businesses in Turkey and South East Europe. This new structure will not impact PepsiCo’s reporting structure, and PepsiCo SSA will remain part of Europe Sub-Saharan Africa (“ESSA”) from a financial reporting perspective. The acquisition, valued at approximately $1.7bn, which implies approximately 11x FY2020E consensus EBITDA, will be funded through a combination of debt and cash, and has been unanimously approved by the Boards of Directors of both companies. The transaction is subject to a Pioneer Foods shareholder vote, certain regulatory approvals, and other customary conditions, and closing is expected by Q1 calendar year 2020. UBS Investment Bank, J.P. Morgan and Centerview acted as financial advisors to PepsiCo. Bowmans acted as the South African legal counsel to PepsiCo. PSG Capital acted as corporate and transaction advisor to Pioneer Foods and Webber Wentzel acted as South African legal counsel to Pioneer Foods.'

In the news today: Munich Re of Africa sees life insurance potential in Sub-Saharan Africa, South African private equity Investment reaches records high, blockchain insurance consortium B3i gets a new leader and activist warns of reputational damage to Old Mutual

Markets RISKAfrica Magazine

Munich Re of Africa sees life insurance potential in Sub-Saharan Africa Countries in Sub-Saharan Africa (SSA) are set to grow their life insurance and reinsurance industries on the back of strong economic growth.