The vendor consideration placing price equates to a 7.6% discount to the 30 business day weighted average traded price prior to the date on which the placing was authorised by the board of Taste.
Pursuant to the vendor consideration placing, Brimstone will hold 12.4% of the Taste ordinary shares in issue.
The vendor consideration placing will be used by Taste to partially fund the acquisition by its wholly owned subsidiary, Buon Gusto Cuisine, of the business operated under the name The Fish & Chip Co. from The Traditional Fish & Chips, as announced on 8 November.
The vendor consideration placing is conditional upon the acquisition becoming unconditional.
As Brimstone is a black controlled and managed investment company incorporated and domiciled in SA, its investment will increase Taste's level of black ownership significantly.
Brimstone seeks to achieve above average returns for its shareholders by investing in wealth-creating businesses, predominantly in defensive clusters including food, healthcare and financial services, Taste said.
"It enters into long-term strategic alliances to which it contributes capital, innovative ideas, management expertise, impeccable empowerment credentials and a values driven corporate identity.
"These business objectives and values, combined with Brimstone's desire to have a positive social impact, are closely aligned with the values and objectives of Taste, particularly the impact of franchising on job creation and skills transfer," it added.
Consequently, the board of Taste has invited Brimstone to nominate a board member once the acquisition has become effective.
Last month, Taste said the purchase price for The Fish & Chip Co was R65 million, along with a maximum of R1 million of stock on hand.
The Fish & Chip Co. is one of the largest fast-food fish take-away businesses in the country with approximately 170 outlets, the majority of which are located in Gauteng.
Taste Holdings invests in mostly franchised, category specialist restaurant and retail brands represented in 324 locations nationally.
The company's food division includes Maxi's, Scooters Pizza and St Elmo's Woodfired Pizza brands as well as its new food services division that manufactures selected products for those brands.
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