By Khulile Thwala
Premier Foods is expected to list on the Johannesburg Stock Exchange (JSE) today, to raise gross proceeds of up to E3.7 billion.
Brait, a subsidiary investment holding company of Brait PLC, will list Premier Foods. The aim is to raise the E3.7 billion proceeds at an offer price range per offer share between E53.82 and E67.04, equating to an equity valuation range of E6.9 billion to E8.6 billion.
Premier operates bakeries, maize, and wheat mills supported by an extensive distribution capability throughout Eswatini, South Africa, and Lesotho. In Eswatini, Premier’s brands include SUB, Mister Bread, Blue Ribbon, Iwisa, Bakers Pride and Ligugu, and Mandla Mageu. Premier operates 30 owned manufacturing sites and 25 distribution depots, spanning South Africa, Eswatini, Lesotho, and Mozambique.
According to the trading site ThinkMarkets, Brait says the listing will provide Premier with access to capital markets. This could be utilised to boost and expand further growth following the company’s strategic goals, and to fund potential acquisitions.
Premier is a leading consumer product goods company in Southern Africa with its portfolio expanding from a traditional milling and baking business to include a groceries business. The company’s operations can be separated into two divisions: Millbake and Groceries International.
Premier’s Groceries and International business include a portfolio of sugar confectionery products, home and personal care products, beverages, and a diverse product range in Mozambique.
Premier produces and markets iconic South African brands such as Snowflake, Blue Ribbon, BB Bakeries, Star, Mister Bread, Iwisa, Nyala, Super Sun, Invicta, Impala, Manhattan, Super C, Mister Sweet, Champion toffee, Rascals, Candy Tops, Frutus, Lil-lets, Vulco, and Dove cotton wool.
In Mozambique, Premier’s leading brands include CIM, Florbela, Favorito, Polana, Top Score, Celeste, Dourado, Sunblest, and Blue Ribbon ( which is imported from Eswatini).
According to DataOrbis market share data, Premier has an approximate 24 per cent market share in bread, 32 per cent market share in flour, 20 per cent market share in maize, 18 per cent market share in total sugar-based confectionery, and an 18 per cent market share in feminine care in South Africa.
Furthermore, Premier held the market-leading position in the Western Cape (37 per cent), and the second-largest market share in KwaZulu-Natal (30 per cent) and the Eastern Cape (34 per cent), respectively.
Since 2012, the coastal regions have been a strong focus for Premier’s success in the bread market, and Premier’s baking business is now on the path to delivering its strategy to expand its inland market share as the Group recently commissioned a new Pretoria-based bakery and mill.