All of a sardine … two nice juicy transactions on the JSE.
It’s just what the market needs to enhance the recent firmness — which some of us more sceptical market watchers can’t help observing in the context of increasingly audible warnings of a bubble in the US markets.
The merging of two large Coca-Cola franchises — encompassing South and Central European markets as well as a sprawling African presence — will make a thrilling secondary listing on the JSE. It offers, if anything, a genuine alternative to the sole beverages listing in the form of AB InBev — and a proper emerging market giant.
The proposed takeover by Premier of smaller (but more brand-diversified) rival RFG Holdings is perhaps a more intriguing tilt. Premier, of course, has a commanding niche in the bread market and has to date made smallish acquisitions to diversify. RFG brings pies, canned food, spices and fruit juices onboard. Premier will be hoping to strengthen the market presence of RFG’s brands — especially the categories it is not currently leading.
The listing of fast-growing fintech business Optasia was also confirmed this month. The market’s response to the IPO pitch will be interesting to gauge, with the share price of EPE Capital — a major shareholder — already shifting up in recent weeks. The market seems more enamoured of the Optasia listing, unlike the mixed response to Blu Label’s proposed listing of Cell C.
What other moving and shaking could we hope for before year-end? Probably not Brait taking a decision on whether to list the resurgent Virgin Active, either by virtue of selling and/or unbundling Premier or selling off its UK fashion interests after killing off remaining debt. I also doubt agribusiness investor Zeder is going to change its mind on agri-inputs business Zaad, which I reckon would make for an interesting specialist listing over the longer term.
ASP Isotopes, which took a secondary perch on the JSE recently, seems intent on spinning off its enticingly named Quantum Leap Energy, and hopes remain that Sasol might separate out its chemicals segment sooner rather than later.
How about AVI unbundling fishing segment I&J and bringing an empowerment partner onboard? Argent, I reckon, should not hesitate too long before securing a separate listing for its engineering niche conglomerate in the UK. With official private university status beckoning, AdvTech might now (re)consider separating its private school and tertiary streams.
