Premier Group cancels listing

Food producer Premier Group has decided against listing on the JSE after turmoil in local markets, particularly last week.

Food producer Premier Group has decided against listing on the JSE after turmoil in local markets, particularly last week.

The rand plunged after an independent report found President Cyril Ramaphosa may have violated the constitution.

“Premier received a significant amount of investor interest and support for the business. However, the SA capital markets (in particular, over the last 48 hours) have not been conducive to supporting a successful IPO.

“Therefore, the Premier board and shareholders have resolved not to proceed with the offer at this time,” it said in a short announcement on Friday.

“The company and Brait would like to thank potential investors for their engagement and interest in the offer throughout the process,” it said.

The company, which owns brands including Blue Ribbon bread, Iwisa maize and Snowflake flour, announced in November that it would debut on the main board of the local bourse in early December.

The panel’s report into allegations that currency was stolen from Ramaphosa’s Phala Phala game farm in December 2020, and media reports that the president was thinking about resigning, led to the rand falling more than 3% against the dollar in intraday trade on Thursday — the biggest one-day drop since February 2021 — and more than 4% against the euro and pound.

Ramaphosa’s spokesperson, Vincent Magwenya, confirmed that Ramaphosa will address the country about the report, but did not specify when.

It is two weeks until the ANC’s elective conference, at which Ramaphosa seemed to be a shoo-in for re-election as head of the governing party, paving the way for a second term as leader of the country.

Premier accounts for about 54% of the total assets of Brait, the private equity firm that owns it. Its listing was expected to result in the private equity firm raking in about R3.7bn in gross proceeds.

Due to the cancellation of the initial public offering, Titan Premier Investments, owned by Christo Wiese, and RMB will buy the unlisted shares for R3.5bn, as set out in the prelisting statement in November.

“The Premier board, management and shareholders remain excited about the opportunity to execute Premier’s growth strategy under private ownership,” it said.

4% drop by the rand against the euro and pound

R3.7bn in gross proceeds was expected to go to Brait from Premier’s listing