Investors launch fresh attempt to exit S.African bottle maker Consol - sources

Prospector Metals

17/09/2021 13:22

* Brait-led private equity consortium is seeking exit
    * IPO is amongst options being looked at, sources say
    * RMB, Barclays appointed as advisors to the process
    * PE group sought exit in 2018 through IPO but failed

    By Emma Rumney and Promit Mukherjee
    JOHANNESBURG, Sept 17 (Reuters) - A consortium led by South
African investment company Brait Plc  BATJ.J  has revived plans
to exit glass bottle maker Consol Glass, two sources said,
possibly via an initial public offering (IPO) three years after
a previous failed attempt.
    The private equity investors took Consol, which describes
itself as sub-Saharan Africa's largest glass manufacturer,
private in 2007 for 6.1 billion rand, worth around $1 bln at the
time. They pulled the planned 2018 listing in Johannesburg
citing challenging market conditions.
    Brait's interest in the company is held via its Brait Fund
IV, which has a 29.7% stake in Consol. 
    In 2018 the consortium, which also includes the private
equity arm of insurer Old Mutual  OMUJ.J  and Sanlam  SLMJ.J ,
wanted to sell roughly a third of Consol to raise 3 billion
rand, or around $250 million at the time after a depreciation in
the value of the rand. That would have valued the entire company
at around 10 billion rand.      
    They have now appointed banks to advise them in their latest
attempt at an exit, two sources, one directly involved in the
discussions and another familiar with the matter, told Reuters. 
    The options on the table include a second shot at an IPO,
the source directly involved said, but declined to give any
further details.
    Consol, which counts blue-chip companies including brewing
giants Anheuser-Busch InBev  ABI.BR  and Heineken  HEIO.AS 
among its clients, said in a statement its policy was not to
comment on speculation but that it would advise all stakeholders
accordingly in the event that any future IPO or change of
ownership is concluded.
    "We do not speculate or provide comment on rumours
pertaining to the asset owned or managed by Brait," Brait told
Reuters. 
    Britain's Barclays  BARC.L  is one of the banks that is
working with the consortium, both sources said. The second
source familiar with the talks said the investment banking arm
of local lender FirstRand  FSRJ.J , RMB, had also been
appointed. 
    Barclays and RMB declined to comment. Old Mutual and Sanlam
did not immediately provide a comment.
    Private equity investors in the region are using the
emergence of South African companies from the most severe
impacts of COVID-19 as an opportunity to review their
portfolios.
    Three investment bankers told Reuters a series of exit
attempts are on the horizon, especially in the industrials
sector as South Africa slowly catches up with a trend already
underway in the West.  
($1 = 14.6276 rand)

 (Reporting by Emma Rumney and Promit Mukherjee; Editing by
Elaine Hardcastle)
 ((promit.mukherjee@thomsonreuters.com; +27 64833 4448;))