South Africa’s Libstar Receives Takeover Interest

Credit: Richard van der Spuy/Shutterstock.

South African user equipment shaper Libstar has drawn liking from imaginable acquirers amid an soul reappraisal of nan business.

In a connection coming (16 September), nan proprietor of dairy marque Lancewood said it had “received non-binding, suggestive expressions of interest” from unnamed parties.

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In March, Libstar revealed it was evaluating “potential strategies done which to present meaningful worth unlock for stakeholders”. 

Libstar said nan submissions covered nan “potential acquisition of each Libstar securities presently successful issue”.  

The institution said its committee has “resolved to further evaluate” nan liking but it cautioned talks pinch nan “potential investors” are astatine an “early stage”.

The group added: “There tin beryllium nary certainty that these engagements will yet consequence successful a binding offer.”

Libstar’s disclosure came alongside nan publication of its financial results for nan first half of nan year.

During this period, nan Denny Mushrooms proprietor generated gross of R5.95bn ($343.2m), a 6.6% summation compared to nan aforesaid play nan erstwhile year.  

Operating profit roseate by 14.6%, reaching R230.8m. Total profit for nan play accrued by 8.7% to R90.7m.

Libstar said nan “total defined market” successful which its products compete declined during nan first half of nan year. The institution pointed to “the relentless unit connected consumers, driven by ongoing nutrient inflationary headwinds and constrained disposable income”. 

However, looking ahead, contempt nan “prevailing macroeconomic headwinds”, nan group expressed assurance successful nan “strength of its brands, customer partnerships, and operational fundamentals”. 

As portion of nan reappraisal Libstar announced successful March, nan institution group retired plans to instrumentality a shared-services model for its ambient products business, focusing connected bedewed condiments.

Additionally, Libstar said it would looking to make changes to its retail, snacks, and spreads divisions. The unit division, Rialto, on pinch Ambassador Foods (snacks) and Cape Coastal Honey (spreads), were to beryllium combined.

In 2024, Libstar reported complete R500m successful impairment charges, resulting successful an EPS nonaccomplishment for nan year. The institution recorded gross maturation of 3.1%, reaching R11.7bn. However, income volumes declined by 3.2%,