Remgro Acquires 80.2% Stake in Rainbow Chicken Post-Unbundling; MandG Gains 5.07%

  • Rainbow Chicken listed on JSE Main Board, June 4, 2024, following RCL Foods' unbundling.
  • Remgro Limited acquires 80.2% stake; MandG Investment Managers gains 5.07%.
  • Company complies with regulatory filings; board confirms accuracy of disclosed information.

Rainbow Chicken Limited (RCL) has made a significant announcement regarding its shareholding structure. The company, incorporated in South Africa, listed on the JSE Main Board on June 4, 2024. This listing follows the unbundling by RCL Foods Limited.

Key Details of the Unbundling

RCL Foods distributed Rainbow Chicken’s shares to its shareholders. This process, known as unbundling, was executed pro rata. The distribution was completed on July 1, 2024.

Shareholding Changes

Following the unbundling, significant shareholding changes occurred. MandG Investment Managers (Pty) Ltd and Remgro Limited acquired major stakes.

MandG Investment Managers’ Stake

MandG Investment Managers acquired a 5.07% beneficial interest. This stake represents a significant investment from MandG on behalf of its clients.

Remgro Limited’s Dominant Stake

Remgro Limited secured an 80.2% beneficial interest. This acquisition makes Remgro the majority shareholder in Rainbow Chicken Limited.

Regulatory Compliance

Rainbow Chicken Limited complied with all regulatory requirements. The company filed the necessary notices with the Takeover Regulation Panel.

Board of Directors’ Assurance

The Board of Directors of Rainbow Chicken Limited confirmed the accuracy of this information. They assured that no details were omitted that could impact the importance of the announcement.

Company Secretary and Sponsor Details

FluidRock Co Sec (Pty) Ltd serves as the company secretary. RAND MERCHANT BANK, a division of FirstRand Bank Limited, is the sponsor.

Detailed Shareholding Table

ShareholderPercentage of Issued Shares
MandG Investment Managers (Pty) Ltd5.07%
Remgro Limited80.2%

Background of Rainbow Chicken Limited

Rainbow Chicken Limited, formerly Rainbow Chicken Proprietary Limited, operates in the poultry industry. It is a well-known brand in South Africa, offering various poultry products.

History and Growth

The company has a long history of growth and expansion. Its recent unbundling marks a new chapter in its corporate journey.

Market Presence

Rainbow Chicken Limited has a strong market presence. The company’s products are widely recognized and trusted by consumers.

Financial Performance

Rainbow Chicken Limited has shown stable financial performance. The company aims to continue this trend post-unbundling.

Impact of the Unbundling on RCL Foods

RCL Foods Limited initiated the unbundling as part of its strategic plan. This move aimed to streamline its operations and focus on core activities.

Strategic Rationale

The unbundling allows RCL Foods to concentrate on its main business areas. It also provides shareholders with direct ownership in Rainbow Chicken Limited.

Market Reaction

The market reacted positively to the unbundling. Shareholders received the news well, anticipating potential growth opportunities.

Future Prospects for Rainbow Chicken Limited

Growth Opportunities

With a new shareholding structure, Rainbow Chicken Limited is poised for growth. The company plans to explore new markets and expand its product range.

Strategic Plans

Rainbow Chicken Limited has strategic plans to enhance its market position. These include investments in technology and infrastructure.

Shareholder Value

The company is committed to increasing shareholder value. It aims to deliver consistent returns through strategic initiatives and operational excellence.

Conclusion

Rainbow Chicken Limited’s recent unbundling and shareholding changes mark significant developments. The company is now better positioned to leverage growth opportunities. With strong backing from major shareholders like Remgro Limited, Rainbow Chicken Limited is set to achieve new milestones.