Innscor Unbundles Specialty Retail

INNSCOR Africa shareholders are set to meet next month to approve the distribution of shares in its specialty retail and distribution company via a dividend in specie.

The unbundling of the group will make Innscor a fully fledged light manufacturing company following the separate listing of Quick Service Restaurants last year.According to the group, the separate listing will unlock value for shareholders; enable a clear operational focus that is attractive to investors while the new business will gain direct access to capital markets.

The extra-ordinary general meeting for shareholders will be held on May 10 while subsequently the listing will take place on May 17.

If approved by shareholders, a total 541 593 440 shares with a nominal value of $0,0001 will be distributed on a one is to one basis with Innscor shares.

Innscor Unbundles Specialty Retail

In a pre-listing statement to shareholders, the specialty retail and distribution company, which will go by the name Axia Corporation, will have three business units each operating as an independent profit centre with a dedicated management team.

The three units are Distribution Group Africa (DGA), Innscor Credit Retail which trades as TV Sales and Home and recent acquisition Transerv.

Former chief executive and current Corporate Finance and Innscor International executive John Koumides will head Axia while Luke Ngwerume, the former Old Mutual Zimbabwe CEO will be chairman.

In the six months to December, Speciality Retail and Distribution turnover was at $104,6 million, a 1 percent increase from the comparable year ago period while net profit was at $4,51 million.

Total assets on the balance sheet were at $103,7 million while cash was at $11,07 million.

Innscor's chief executive Toni Fourie recently told analysts that a couple of disposals and an unbundling will see the group becoming a "pure light manufacturing business."

The group will, at the end of the current financial year, now be made up of Irvine's, Colcom Ltd, Bakeries Factory, Natfoods, Profeeds, Natpak and Capri.

Natfoods which is the biggest of the units will be comprised of Maize, Flour, FMCG, Pure Oil Limited and Breathaway Private Limited.