Bidvest to Sell 4.4 Billion Rand of Bid Corp Shares in Placementby
Bidvest Group Ltd. will offer shares worth as much as 4.4 billion rand ($287 million) in recently spun out foodservices unit Bid Corp Ltd. on the Johannesburg Stock Exchange, after some shareholders weren’t able to take up their allocation.
As many as 18.4 million Bid Corp shares will be available for sale, with proceeds going to investors who were due to receive the stock, Johannesburg-based Bidvest said in a statement after trading had closed on Tuesday. The securities will be sold at 230 rand to 240 rand each, compared with a closing price of 250 rand, according to a term sheet.
Bidvest, which operates a range of businesses including car rentals, freight and office management, unbundled the food-services business last month to help management focus on their respective businesses and identify and pursue growth opportunities, including acquisitions. Bid Corp shares gained on their first day of trading, but have since slipped below their opening price of 270 rand.
Standard Bank Group Ltd. is acting as sole global coordinator and joint bookrunner with Bank of America Merrill Lynch.