Listed investment holdings group Remgro could buy out minorities in its operating subsidiary RCL Foods after the group bought about seven-million shares in the owner of Yum Yum, Selati and Nola brands in December. RCL Foods’ share price rose 12.4% in early trade on Thursday before it retreated, closing 8.77% up at R15, the highest in three weeks. The decision to buy the shares in the open market could be a precursor to Remgro’s buyout of minority shareholders in its listed operating subsidiary, according to Brendon Hubbard, a portfolio manager at ClucasGray. RCL, which has a market capitalisation of R13.6bn, is one of the largest processors and marketers of chicken in Africa, with around 24-million chickens on the ground at any time on over 180 farms countrywide. Hubbard said on Thursday the move, which takes Remgro’s interest in RCL to about 78%, could be part of a broader strategy by Remgro to “clean up” its portfolio of investments, while also on the look-out for attractive inves...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.