MONDAY, 1.30PM
The share price of Hunt Leuchars & Hepburn rose 20% on Friday to R6,50 when the market gave the thumbs-up to the proposed restructuring of the Rembrandt-owned food company.
The restructuring will see the unbundling of Rainbow Chickens to shareholders. The decision has been prompted by the effect of loss-making Rainbow on HL&H’s share price, according to Rembrandt sources. “Rainbow’s poor performance meant that HL&H trades at a substantial discount to its underlying value … it is in the best interest of shareholders to remove this relationship,” said Thys Visser, managing director of Rembrandt and a director of HL&H.
Visser said that the market’s positive reaction to the proposed restructuring was expected. The news also buoyed Rainbow shares, but HL&H cautioned shareholders to exercise restraint when dealing with either share until further details of the restructuring are made available.