SINGAPORE - Gardenia and Bonjour bread maker QAF said on Wednesday (Sept 13) it plans to retain a controlling interest of at least 51 per cent in the pork production and feedmilling business it is restructuring for an initial public offering (IPO).
QAF announced it will hold an extraordinary general meeting on Oct 6 for shareholders to vote on the proposed listing of the restructured company on the Australian exchange.
The proposed listing will involve an IPO of shares in QAF's wholly-owned subsidiary, Hamsdale Australia Pty Ltd (to be renamed Rivalea Ltd), or any other wholly-owned subsidiary of the group and its subsidiaries (Australian Listing Group).
The Australian Listing Group has a revenue of approximately A$388 million in 2016 and about 1,100 employees. In 2016, it accounted for approximately 17 per cent of Australia's pork production and processed approximately 24 per cent of it.
Its operations, which are located in New South Wales and Victoria, include seven owned pig farms, 19 contract pig farms owned by third parties, three feedmills, two pork processing plants and two grain storage facilities.
In 2016, the group produced more than 64,000 tonnes of pork carcasses, processed approximately 1.2 million pigs and produced approximately 337,000 tonnes of stockfeed, while its its grain storage facilities has a capacity of over 75,000 tonnes.
The proposed listing's revenue for the first half of 2017 was S$199.8 million, with net profit at S$9.9 million.B
QAF said that it could recognise a gain of S$8.5 million to its equity after the listing of 49 per cent of its interest based on various assumptions. These include a market capitalisation of S$224.1 million for the listing, S$88.8 million raised by selling new shares to the public and S$21 million from selling current shares, and expenses of S$8 million excluding cash bonus to senior employees.
In connection with the proposed listing, QAF also expects to receive approximately A$52.0 million from the repayment of unsecured loans extended by the group to the Australian Listing Group for working capital purposes. This will enable the group to deploy the net proceeds thereof for its other core businesses, new business opportunities and/or such other purposes, said QAF.