JOHANNESBURG Oct 17 South African drug retailer
Dis-Chem plans to list its shares on the Johannesburg stock
market, it said on Monday, in a move that would allow founders
to partially cash in on their investment and bring a rival to
the sole pharmacy merchant on the bourse.
Founded by chief executive Ivan Saltzman and his wife
Lynette, Dis-Chem has grown from a start-up in 1978 to a major
health products retailer with annual sales of more than 15
billion rand ($1.08 billion).
However, its store network of about 100 is dwarfed by its
closest competitor Clicks Group Ltd , which runs more
than 700 outlets that bring in around 23 billion rand ($1.66
billion)in annual sales.
"Our decision to list on the JSE is an important next phase
of Dis-Chem's growth story," Saltzman, a pharmacist, said in a
"It also facilitates a partial exit whilst allowing existing
shareholders and key management to remain materially invested
ensuring strong alignment between management, existing and new
Dis-Chem did not give timelines or the size of the planned
offer to selected institutional investors but said the share
sale was subject to market conditions and regulatory approvals.
The company's existing shareholders comprise the Saltzman
Family Trust, holding 66.9 percent of the company, while
management and an unspecified financial investor hold 23.4
percent and 9.7 percent, respectively.
Goldman Sachs, Investec Ltd and Standard Bank have been
appointed as joint global coordinators and joint bookrunners.
Merrill Lynch has been appointed as joint bookrunner while
Investec and Standard Bank have been appointed to act as joint
($1 = 13.8542 rand)
(Reporting by Tiisetso Motsoeneng, editing by Louise Heavens)