Pan African restaurant operator with roots and a listing in Zimbabwe, Simbisa brands will further alter the terms of acquiring Foodfund following deferements in the LSE AIM listing.

Foodfund is a family owned UAE based restaurant operator which would make the acquisition a vertical one bringing the advantage of scale and geography. Its portfolio includes 17 outlets operating under 7 independent food and beverage brands situated in Europe, Middle East, South Africa and the UK.

In order to satisfy its expansionary demand, foremostly its acquisition of Foodfund, Simbisa shareholders earlier this year voted in favour of seeking a secondary listing on the London Stock Exchange’s Alternative Investments Markets.

In a circular to shareholders earlier in February the company said capital raised through an IPO on AIM will reduce the overall cost of funding, allowing the Company to remain competitive whilst unlocking shareholder value and ultimately enlarging the Company’s capital base.

Simbisa initially proposed to acquire Foodfund at a consideration price of $25.7 million for its 100% in exchange of a 100% shareholding.

This offer was later revised downwards to 50% equity so as to encourage the former controlling shareholder to maximise their effort in driving the company’s growth.

In Simbisa’s latest financial statement for the full year to June 2018, the company said that it is postponing the secondary listing on the AIM and the acquisition of Foodfund, which from the beginning, was tied to it.

Without giving further details on the reasons for deferements, Simbisa told its shareholders that it remain committed to the future listing while highlighting that parties to the Foodfund acquisition agreement have agreed to amend the acquisition terms as presently structured in line with the  secondary listing postponement.

Simbisa has been doing well on the regional front and its aggressive expansion through acquisition and organic growth is paying off.

 The company reported in its financials that all markets recorded growth over the last 12 months to June 2018 while it exited the DRC market due to continued underperformance.