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Johannesburg - Bidvest Group [JSE:BVT] and its newly spun-off food services unit Bid Corp increased their combined market valuations after the latter started trading on the Johannesburg Stock Exchange (JSE) on Monday, indicating investors see more value in separating the businesses.
Bid Corp shares started trading at R270, valuing the company at R91.6bn. Bidvest, which will now focus on non-food services such as car rental, freight and office management, is now valued at R38.6bn, bringing the combined market capitalisation to about R130bn, compared with about R124bn on Friday.
The listing on the JSE "positions us superbly for our next phase of organic and acquisitive growth," Bid Corp chief executive officer Bernard Berson said in an e-mailed statement.
"The focus we now have as a standalone company will strengthen management’s determination to continue generating and enhancing sustainable, long-term returns for all stakeholders."
Food service unit accounted for 60% of Bidvest’s sales in the six months through December.
The unit includes businesses from catering to food-processing, and operates in more than 20 countries across Europe, Australasia, the Middle East and Southern Africa, according to the company’s website.
