Taste Holdings sells Maxi's and the Fish & Chip Company
The company did not disclose the buyer or the price.
South Africa-based Taste Holdings on Tuesday announced it would offload food brands Maxi’s and The Fish & Chip Company as part of its continuing change and new strategic direction.
The group said it had entered into an agreement in terms of which the company will dispose of the two food brand franchise businesses.
The company did not disclose the buyer or the price. Taste bought Fish & Chip Company for R66 million in 2012. In April 2005, it acquired Maxi’s.
“Shareholders are referred to the company’s Sens announcement of November 1, regarding the change of strategic direction of the company and the consideration by the board of the sale of all of the Taste food brands, being Starbucks, Domino’s Pizza, Maxi’s and The Fish & Chips Company.
"The outcome of this strategy would be for Taste to become a focused luxury retail group consisting of NWJ, Arthur Kaplan and World’s Finest Watches,” the group said.
Taste Holdings sold its local Starbucks franchise for R7 ?million to an entity called K2019548958 in a strategic shift away from food brands for the company.
The company said it had become evident that capital investment required for the previous expansion strategy could not be secured, given the current structure of the business and existing market conditions.
Management said it estimated that the company would require at least R700 million, including the amount raised in the current rights offer, to reach positive free cash flow, and the Starbucks network would have to expand to between 150 and 200 cafés, and Domino’s to between 220 and 280 restaurants.
The Starbucks business currently consists of 13 corporate-owned Starbucks stores situated in Johannesburg, Pretoria and Durban.
The group said the disposal of Maxi’s and The Fish & Chips Company remained subject to regulatory conditions. It said it anticipated that the transaction would be completed in two weeks.