RMB advises RCL FOODS and Rainbow Chicken on unbundling and JSE listing

The challenge

Rainbow is a South African market-leading, fully integrated poultry and animal feed producer, with operations across the entire chicken production value chain. The company had been on an extensive journey to reset its operational and financial performance towards becoming a sustainable, market-leading, low-cost poultry producer.

Following an extensive two-year assessment of various separation options, the unbundling from RCL FOODS emerged as the most viable solution for all parties. As a trusted adviser to RCL FOODS for many years across advisory, lending, and transactional banking, RMB was in the ideal position to assist.

The RMB solution

RMB was appointed as sole financial adviser in respect of the unbundling to both RCL FOODS and Rainbow. In addition to its role as financial adviser, RMB also led the extension of approximately R5bn in syndicated facilities to RCL FOODS and implemented a R500m general banking facility and additional ancillary facilities for Rainbow.

A range of RMB teams across advisory, lending, transactional banking and client groups worked closely on the unbundling, navigating significant complexity associated with the separation of Rainbow from RCL FOODS.

The result

RMB delivered structural and funding solutions for both RCL FOODS and Rainbow that ensured long-term sustainability and success. RMB achieved this through bespoke financing packages with a focus on enabling our clients’ strategic growth plans and managing the end-to-end process of successfully listing Rainbow on the JSE.