Innscor Africa Limited shareholders will hold an extraordinary general meeting on November 2 to approve the unbundling of its Quick Service Restaurant (QSR) unit and unlock shareholder value. Shares of the QSR business, to be named Simbisa Brands Limited, will list on the Zimbabwe Stock Exchange (ZSE) on November 6.
BY BUSINESS REPORTER
The unbundling will be done through the distribution of the entire issued share capital of 541 593 440 ordinary shares of a nominal value of $0,0001 of Simbisa to the shareholders of Innscor through a dividend in specie with a ratio of one ordinary share in Simbisa for every one existing Innscor ordinary share held.
The QSR business comprises of Chicken Inn, Creamy Inn, Pizza Inn, Bakers’ Inn, Fish Inn and Dial-a-Delivery. It also has third party licences for Galito’s, Steers (Zimbabwe only), Nandos (Zimbabwe only) and Vida E Caffe (Mauritius).
The unbundling of the QSR business was approved at a May 22 meeting of directors.
Innscor said the rationale for unbundling and listing of the QSR business is to unlock value for the Innscor shareholders, enhance the ability of the QSR business to pursue strategies that maximise shareholder value and enabling a clear operational focus that is attractive to investors.
It said the unbundling was meant to establish investment flexibility for investors, create financial independence and enhanced transparency for the company so it can report independently to its shareholders.
In a statement accompanying financial results for the year ended June 30, Innscor board chairman Addington Chinake said the Zimbabwean QSR unit saw its profit before tax up 7,3% despite flat revenue. He attributed the growth to improved efficiencies and cost reductions.
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The cost reductions include the closure and relocation to new sites of seven non-performing stores comprising four Chicken Inns, one Creamy Inn and two Bakers’ Inns.
In the full year ended June 30, the regional QSR business posted a 7,18% growth in revenue and 29,73% improvement in profit before tax.
Chinake said 55 outlets were added to the regional QSR in the financial year, including entry into a new market, Namibia.
In the period under review, total regional store network, including franchised counters, grew to 186 compared to 178 stores operated in Zimbabwe.
