Bloomberg News

Foodcorp Bonds Gain on 600 Million Rand Sale of Fishing Unit

September 01, 2011

(Updates with company comment from second paragraph.)

Sept. 1 (Bloomberg) -- Foodcorp Ltd., South Africa’s third- largest food company, said it will reinvest proceeds for the 600 million rand ($86 million) sale of its fishing business in existing businesses. The company’s bonds rallied.

The buyer can only be identified once all conditions of the transaction have been met, Chief Financial Officer Ockert Janse van Rensburg said in a telephone interview from Johannesburg today. The deal may be completed within three months, the company said in a statement.

The fishing division of Foodcorp, which also produces Nola mayonnaise and Ouma rusks, includes consumer brands Glenryck pilchards and Marpro, a premier deep-sea hake, monk kingklip and rock lobster brand.

“Any proceeds that have not been used on capital expenditure within 365 days will be returned to bondholders,” Janse van Rensburg said. Yields on the company’s 390 million euros ($555 million) 8.75 percent bonds due March 2018 declined by 24 basis points to 11.20 percent by 4:43 p.m. in Johannesburg, the lowest since Aug. 22.

--Editors: Vernon Wessels, Ana Monteiro, Karl Maier

To contact the reporter on this story: Jana Marais in Johannesburg at jmarais@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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