GrainCore — Exit Strategy

The exit strategy and the value-realisation pathways available to equity investors over the planning horizon.

GrainCore Business PlanSection 24 › Exit Strategy

Section 24 · Business Plan

Exit Strategy

The exit strategy and the value-realisation pathways available to equity investors over the planning horizon.

The Company offers equity investors multiple credible exit routes,
supported by the active consolidation underway in the sector and the
strategic value of an efficient, integrated, FSSC 22000-certified
milling platform with established brands and distribution.

Exit route Rationale Indicative horizon
Strategic FMCG acquisition Majors seeking efficient capacity & brands amid consolidation Year 5–7
Private-equity transaction Secondary buyout of a cash-generative, deleveraged asset Year 4–6
JSE listing Public listing once at regional scale with track record Year 6–8
Regional merger / consolidation Combine with complementary regional millers Year 5–7

Table 24.1 — Potential investor exit routes.

At a conservative 5.5x EBITDA exit multiple on projected Year 5
EBITDA of R624 million, the implied enterprise value is approximately
R3.43 billion against debt fully repaid — underpinning the attractive
equity returns set out in Section 19.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of GrainCore Milling & Foods (Pty) Ltd.