AEEI IN FINAL PREPARATION TO LIST ITS FISHING DIVISION ON THE JSE MAIN BOARD

22 November 2016
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JSE-listed African Equity Empowerment Investments Limited (AEEI), a diversified investment empowerment company, as part of its Vision 2020 Vision, announced that it will be listing its Premier Food and Fishing division by mid-2017.

The AEEI board released a SENS announcement that it had approved a proposal to list Premier Food and Fishing and has started a roadshow to potential investors. It is anticipated that subject to market conditions the listing will be completed within the first quarter of 2017.

Often spoken about by Chief Executive Officer of AEEI Mr Khalid Abdulla at media interviews and presentations, it seems that AEEI is focussed on delivering on their Vision 2020 Vision and building sustainable value for all its stakeholders by amongst other, separately listing certain of its sectors i.e. its Food and Fishing and IT divisions.

At the recent announcement of AEEI’s 2016 financial year-end results, the Premier Food and Fishing surpassed expectations by increasing its operating profit by 37% due to increased  sales volumes, achieving better pricing, good catch rates, efficient vessel scheduling and utilisation, specifically in its south and west coast rock lobster, pelagic, squid and abalone sectors.

This is mirrored in Premier Food and Fishing’s growth in revenue from R348m to R401m, increasing operating profit for the year from R56m to R74m and continuing to generate strong cash flows in line with profitability.

Premier Fishing (Premier) is the largest black owned and managed food and fishing company in South Africa and has been in existence since 1952. It holds medium to long term quotas in south and west coast rock lobster, squid, pilchards, hake, and environmentally friendly agri-biotechnology products and also boasts its own abalone farm which currently produces about 15% of the South African farmed abalone.

The abalone farm is based on sustainable fishing for the future and is a high growth area for further investment. In October 2016 the farm received its Environmental Impact Assessment (EIA) approval for plans to further expand its farm capacity from 120 to 320 tonnes. The expansion of the abalone farm is expected to commence during 2017.

Premier is a vertically integrated food and fishing company which manages and controls a large portion of its value chain related to its fishing species, which includes harvesting, processing, marketing, sales and distribution.

Premier has shown consistent organic growth over the past 5 years, achieving annual growth of more than 20% year on year.

Premier is exceptionally well-positioned for both medium to long term quota allocations as a result of its overall empowerment credentials, investment in the industry, sustainable job creation as well as community building. Premier holds quotas in 6 of the available 22 sectors in the market which equates to approximately 5% of the total South African market. The company has the  potential to further increase its market share in South Africa.

All due processes are in progress and Premier is in the final stages of preparing the business for the JSE requirements for listing, hence the current roadshows that are taking place. AEEI is optimistic about the outcome of the market-sounding roadshow and will be sharing pertinent details of the next phase with the market at the appropriate time.

The food sector in South Africa is seen as a high growth area and is key due to sustainability and future food security. Premier has significant exports which makes it attractive as a Rand/Dollar hedge.

AEEI, the majority shareholder of Premier Food and Fishing recently received awards from Empowerdex as the Most Empowered Company and the Most Empowered Management; and is also a Top 10 JSE listed company for financial performance in the Financial Mail’s top 100 JSE listed companies.

African Equity Empowerment Investments Limited (AEEI) is a listed entity on the Johannesburg Stock Exchange (JSE) since 1999 and holds strategic investments, some with international partners, as well as operational investments in food & fishing, technology, health care & biotherapeutics and events and tourism.

AEEI is recognised by its peers as a successful pioneer in promoting the interests of HDIs and previously marginalised communities. The Group’s commitment to transformation, including employment equity, skills and enterprise development, as well as corporate social investment, makes it a role model for BBBEE.

AEEI is an exporter and generates a significant portion of income in foreign currency and also has stakes in British Telecommunications South Africa and SAAB SA.

AEEI achievements:

  • 1st overall in the Empowerdex Top 100 Empowered Companies Award of 2016 ;
  • 1st overall in the Empowerdex Top 100 Empowered Management Control Award of 2016;
  • Ranked as a Top 10 JSE-listed Company in the Financial Mail’s Top 100 Companies for financial performance in 2016 and 2015;
  • 10th overall in 2015 in the Sustainability Data Transparency Index by the Integrated Reporting and Assurance Services out of the top 500 JSE-listed companies. In 2014, AEEI received the top award – Sustainability Data Transparency Index’s highest score in the Financial Services sector and was rated 16th overall. In 2013 AEEI was ranked 182 overall;
  • A finalist in the Top Empowered Business of the Year Award at the Annual Oliver Empowerment Awards in 2015; and
  • Impumelelo Certificate of Excellence Award – Top Empowered Companies – in recognition of our commitment to transformation for the 2015 year.

For further information and to schedule interviews with the CEO Mr Khalid Abdulla, or with Mr Samir Saban, CEO of Premier Fishing, contact:

Feroza Petersen  | Communications and Marketing Manager
Email:      Feroza@aeei.co.za | Tel:  +27 21 427 1400  |  Mobile:   +27 82 801 3919
Web:       aeei.co.za