The JSE’s small packaging sector will be reinforced by the confirmation on Thursday of glass packaging company Consol’s long-awaited return to the stock exchange.
Consol, which has investment house Brait as a major shareholder, looks set to raise substantial capital on listing to execute growth plans in SA and selected African markets.
Consol was delisted from the JSE in 2007 when it was bought out by a consortium of private equity investors, including Brait Private Equity and Old Mutual Private Equity.
Private-equity investors typically look to exit an investment in five to seven years, which meant the market had long expected either the sale or relisting of Consol.
For investors there is not a great deal of financial information around Consol or its capital-raising plans in the intention to float notice. More detail is only expected to be released with the prelisting statement.
Consol said that it now aimed to use about R2.7bn of the net proceeds of the proposed listing to strengthen and deleverage its balance sheet.
Consol CEO Mike Arnold would not be drawn on Consol’s debt figure, but indicated that the intention was to bring gearing down to a more market-related level.