Zimbabwean fast food group Innscor Africa will separately list its restaurants unit on Nov. 6, allowing it to pursue mergers and acquisitions of companies operating similar businesses, the company said on Monday.
Innscor, the third biggest firm on the local bourse, runs inhouse brands Chicken Inn and Pizza Inn and the Nandos and Steers franchises.
In a circular to shareholders, Innscor said the restaurants arm had 388 restaurants in 11 African countries and would be listed under a new company, Simbisa Brands Ltd.
Under the transaction, shareholders would receive one Simbisa share for every Innscor share and would be asked to approve the deal at an extraordinary meeting on Nov. 2.
Innscor said the restaurant division posted a profit of $7.5 million in the year to June, up from $6.1 million previously.
Former chief executive of South Africa’s Ellerine Holdings, Tony Fourie, is the leading the restructuring of Innscor, which also runs the Zimbabwe arm of supermarket Spar. Source: Share Net