Consol cancels plans to list on the JSE
Glass packaging manufacturer Consol Holdings has announced that it is cancelling its initial public offering for listing on the main board of the JSE.
In a statement issued on the JSE’s SENS on Wednesday, the group said that challenging market conditions means it would not be able to meet its valuation objectives through the listing.
The group had planned on raising as much as R3 billion through the IPO.
“In light of challenging market conditions, the board of directors and shareholders of Consol have resolved that the prevailing environment is not conducive to the offer achieving their valuation objectives and that it would not be in the best interests of the company to proceed with the offer at the current time,” it said.
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.
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.
In its pre-listing information it recorded revenue and Adjusted EBITDA at R3.7 billion and R936 million, respectively for the six months ended 31 December 2017, 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 was targeting to use approximately R2.7 billion of the net proceeds of the Listing in order to strengthen and deleverage its balance sheet.
“Consol remains focussed on delivering upon its growth strategies in South Africa and Rest of Africa, including the commissioning of its new facility in Ethiopia later this year. Consol remains confident in the outlook for its business and the markets in which it operates,” it said.
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