KWV could list after restructure

Premium wines and brandies producer KWV is to restructure, which may see it finally list its operating entity, which produces export-quality products.

The restructuring, expected to be completed by the end of the financial year, is expected to see the listed investment arm shed its operational assets, which are responsible for brand names such as Perold, Cathedral Cellar, KWV Reserve, Roodeberg, Laborie, KWV Lifestyle, Robert's Rock and Pearly Bay wine brands.

The company also produces brandies that are three, five, 10 and 20 years old. KWV has an effective 29.24% interest in Distell.

Its listed entity is an investment holding company that holds 50% of the issued share capital of Remgro-KWV Investments, which holds 58.5% of Distell. Distell is mainly invested in the manufacture, distribution and marketing of wine, spirits and alcoholic fruit beverages.

Absa Investments analyst Chris Gilmour said yesterday it was likely that KWV's operations would be separately listed, which would unlock value for shareholders, as it had hinted as much last year.

The company had been “very successful offshore in creating markets”, he said. Gilmour said there was further scope for growth offshore.

KWV said in its cautionary announcement that the “proposed restructuring will allow management to focus its attention on adding value to its own operations”.

Source: Business Day

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