Foodcorp Fails to Lure Takers With Offer to Buy Back Euro Debt

New Foodcorp Holdings (Pty) Ltd., a South African food company, said it failed to attract a single valid offer to redeem its remaining euro-denominated debt to meet the terms of a takeover.

Foodcorp, which owns brands such as Glenryck canned fish and Nola mayonnaise, offered 101 percent of the face value for its 390 million-euro ($522 million) securities due March 2018 on May 17. Yields on the bonds rose 1 basis point, or 0.01 percentage point, to 6.10 percent as of 1:13 p.m. in London, pricing the debt at 108 percent of face value.

Remgro Ltd. (REM)’s Rainbow Chicken, South Africa’s largest chicken producer, paid 1 billion rand ($100 million) for 64.2 percent of Foodcorp on April 29. The deal, supported by a 3.9 billion-rand rights offer underwritten by Remgro, broadened Rainbow’s range to include products from peanut butter to dog food. A change of control clause related to the bonds forced Foodcorp to make the offer to bondholders.

“Foodcorp did not receive any valid tenders of notes,” the company said in a statement today. Michael Holte Christensen, who helps manage the equivalent of $805 million in global high-yielding corporate debt at Jyske Bank A/S (JYSK) in Silkeborg, Denmark, said on May 17 the offer was too low.

Rainbow Chicken (RBW) fell 0.7 percent to 15.35 rand as of 2:24 p.m. in Johannesburg, giving the company a market value of 9.6 billion rand.

To contact the reporter on this story: Jaco Visser in Johannesburg at

To contact the editor responsible for this story: Vernon Wessels at

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