S.Africa's Taste Holdings to raise rights offer - CNBC Africa

S.Africa's Taste Holdings to raise rights offer

Southern Africa

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Taste Holdings' pizza brands include Scooter's pizza and St Elmo's. PHOTOS: Hotel and Restaurant/Getty Images

[DATA TAS:Taste Holdings] is a management group headquartered in South Africa with brands such as Scooter’s Pizza, St Elmo’s woodfired Pizza, The Fish and Chip Co and NWJ Jewellery. More recently, Taste acquired the franchise rights to open American franchise, Domino’s Pizza.

(WATCH VIDEO: Taste gets Domino's license)

“In terms of the rights offer, Taste will offer a total of 60,052,514 new shares at a subscription price of 300 cents per rights offer share in the ratio of 29.20 rights offer shares for every 100 shares held at the close of business on the record date for the rights offer, being 12 September 2014,” Taste Holdings said in statement.

The company added that the purpose of the rights offer was to provide the group with additional capital to two main avenues.

These include leveraging the Domino’s Pizza licence the group acquired in April 2014 for seven African countries, as well as pursuing acquisitions in line with its stated strategy in the Quick Service Restaurant (QSR) segment.

Taste’s QSR segment is particularly designed to serve emerging middle income consumers.

The group anticipates that the food services division will additionally continue its improvement in efficiencies, and that the jewellery division will increase its corporate-owned store base.

(WATCH VIDEO: Taste Holdings- Hot or Not)

“Taste has historically been cautious in its future outlook, especially with regard to forecasting factors beyond its direct control. While sales in Taste’s two pizza brands have shown continued positive sales growth during the current year, demand among lower income consumers remains weak and it is anticipated that this will continue through the 2015 financial year, potentially offsetting gains made in the pizza division,” Taste Holdings explained.

“With regard to those factors within its control, the group is encouraged by the medium and long-term benefits the Domino’s Pizza roll-out and conversion will bring.”