Consol Glass is set to re-list on the JSE

Glass packaging manufacturer Consol Holdings on Thursday announced its intention to list its issued ordinary shares on the main board of the JSE.

Consol, which provides glass packaging products to customers in a variety of industries including beer, wine, flavoured alcoholic beverages, non-alcoholic beverages, spirits and food, said it expects to be listed in the Industrials: Containers and Packaging sector of the JSE.

The group has operations in South Africa, Kenya and Nigeria, and exports to 17 African jurisdictions in aggregate. In addition, Consol is currently constructing a new facility in Ethiopia, which is expected to be commissioned during the fourth quarter of 2018.

As at 31 December 2017, the group said its total manufacturing capacity across sub-Saharan Africa included six manufacturing facilities and 13 furnaces capable of producing output of approximately 932,000 tonnes of manufactured glass that can be sold per year.

Consol was previously listed on the JSE until 2007 when it was taken private by a consortium of private equity investors, led by Brait Private Equity and including Old Mutual Private Equity, Sanlam Private Equity, HarbourVest Partners and the management of Consol.

Consol CEO, Mike Arnold, said: “As sub-Saharan Africa’s leading glass manufacturing and packaging company, our development plans are for aggressive growth locally and through the rest of the African continent. We believe that by combining our competitive advantage and technical ability with our exceptional level of experience within the current committed leadership team, we can open up exciting opportunities to create significant value for our future shareholders.”

The group’s major customers include Anheuser-Busch InBev (following its acquisition of SABMiller), Diageo, Distell, East African Breweries, Namibia Breweries, Heineken and Tiger Brands.

For the six months ended 31 December 2017, Consol’s revenue and Adjusted EBITDA were R3.7 billion and R936 million, respectively, compared to R3.45 billion and R896 million before. For the financial year ended 30 June 2017, Consol’s revenue and adjusted EBITDA were R6.2 billion and R1.6 billion, respectively.

Consol said it is targeting to use approximately R2.7 billion of the net proceeds of the Listing in order to strengthen and deleverage its balance sheet. “Additional listing proceeds of an amount to be determined will be used to repay a portion of the group’s shareholder loans.

“The balance of the shareholder loans will be converted to equity upon Listing. Certain existing shareholders may also sell additional shares for the purpose of covering over-allotments of up to 15% of the total number of shares placed as part of the listing.”


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Consol Glass is set to re-list on the JSE