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