RCL bounces after Remgro purchases


RCL bounces after Remgro purchases

Published Date: 2019-01-11 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

RCL bounces after Remgro purchases

Remgro is reported to have increased its stake in the food producer with on-market purchases over December.

Shares in RCL Foods jumped over 12% yesterday, making it the biggest mover on the JSE's All Share index. There was no specific news, but there has been speculation that parent company Remgro could make a bid to buy out minority shareholders.

A number of Tweets on Twitter drew attention to Remgro's purchases of shares in the food group over December. The investment holding company is RCL's biggest shareholder and owns about 77% of its stock, according to its website. That number may be higher following December's purchases.

RCL is a food holding company with interests in consumer groceries, sugar and milling and logistics. It was formed through the amalgamation of Remgro food businesses Rainbow Chickens and TSB Sugar and was bulked up by the 2013 acquisition of Foodcorp.

Its shares closed 8.8% higher at R15. More than 600,000 shares changed hands in 342 transactions worth R8.45 million. Remgro rose 1.5% to R204.27.

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