Announcement
TRANSACT: MOA: Moa Group announces divestment of Moa Brewing Company
09:23am
MOA
19/02/2021 09:23
TRANSACT
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REL: 0923 HRS Moa Group Limited
TRANSACT: MOA: Moa Group announces divestment of Moa Brewing Company
Moa Group Limited (NZX: MOA) ("Moa", "the Group"), announces the divestment
of Moa Brewing Company, continuing the development and expansion of its
successful hospitality group, Savor Group, one of New Zealand's largest
hospitality businesses.
Highlights
o Divestment of Moa Brewing Company Limited for total proceeds of
approximately $1.9 million
o Divestment creates greater balance sheet flexibility to pursue growth and
capability to generate future earnings
o Company name change and rebrand to Savor Limited (NZX: SVR)
o Appointment of Lucien Law to Managing Director and Chief Executive Officer
of the Group
o Appointment of EY as the Group's new external auditor
Sale of Moa Brewing Company
The future of Moa Brewing Company has been a focus of the Board and
management over the past six months. The Board recognises the value that the
Brewing business has brought to the Group, which formed the foundations of
where the Group stands today.
However, the Board, with the support of management, has concluded that the
best outcome for shareholders is to allocate capital and management attention
to the areas of the business with the greatest growth and earnings potential.
The hospitality businesses, under the brand of Savor Group, has performed
above expectations since it was acquired on 1 April 2019. The subsequent
acquisition of Non Solo Pizza, and development of new venues has seen a
progressive shift in the Group's operations to now be primarily hospitality
focused, with those operations representing 65% of revenue and over 100% of
profitability in FY20.
Lucien Law, Incoming Chief Executive Officer of Savor Limited, said: "Now
with a single focus we will move on exciting opportunities for strategic
growth through new concepts, both refreshing existing spaces and adding new
ones to deliver the best experience for our customers.
" The successful relaunch of Non-Solo Pizza and the expansion of the Azabu
brand to Mission Bay, have highlighted the growth potential for the
hospitality business, and we are confident about the expertise of the team to
execute on more opportunities in our pipeline in due course."
On the sale of Moa Brewing, the Group consulted with a range of potential
purchasers of the business and determined the best outcome for shareholders
was to unconditionally agree to sell Moa Brewing Company Limited to Mallbeca
Limited, a company associated with current CEO Stephen Smith and his family
interests, for approximately $1.9 million on a debt and cash free basis. The
transaction is expected to complete at the end of February 2021.
The Board is delighted that Moa Brewing will continue under the leadership
and ownership of current CEO Stephen Smith, who has been invaluable in
identifying the core business challenges over the past two years to enable
stronger fundamentals in the future.
Geoff Ross, Chairman, said: "The commitment of our shareholders to Moa
Brewing since listing in 2012 has been unwavering. We were able to be a true
disrupter in the market, and the Board continue to be proud of the position
that Moa holds in the craft beer sector."
"This has been a difficult decision for the Board, however, we know that this
is the best outcome for all shareholders. We have no doubt that Stephen with
support of his family is the right person to take the business forward and
will be a true protector of the Moa brand."
Company name change
The divestment of the Brewing business will require the remaining Group to
change its name. Moa Group Limited will become Savor Limited from 1 March
2021, with the NZX ticker changing from "MOA" to "SVR" on the same date.
Management structure
The Board has also undertaken a review of the structure of management in
light of the divestment of the Brewing business and is pleased to announce
that Lucien Law has been appointed as Managing Director and Chief Executive
Officer across all operations of the Group from 1 March 2021.
At that time, Geoff Ross will move from Executive Chairman to Chairman and
will become a Non-Executive Director. Geoff's oversight has been invaluable
through the integration of Savor Group, allowing Lucien and Stephen to focus
solely on their respective business areas.
Geoff Ross, Chairman, said: "As part of the focus on growing the hospitality
business, the Board has decided to appoint Lucien Law as Managing Director
and Chief Executive Officer of the Group. Lucien is the founder and creative
force behind Savor Group and has a proven ability of building businesses from
concept to exceptional customer experiences. He has a depth of experience in
the industry and management that are unmatched in the New Zealand market."
Change in auditor
The change in the Group's strategic direction with the divestment of the
Brewing business and the focus on expanding the hospitality business has also
led the Board to review its external advisers.
The Board has appointed EY as the Group's auditors effective immediately, and
thanks Grant Thornton for their work and support, particularly through the
acquisition of Savor Group and Non Solo Pizza in the prior year.
- ENDS -
Investor Enquiries
Geoff Ross
Chairman, Moa Group Limited
Mobile: 021 424 219
Media Enquiries
Renee Bertuch
Cannings Strategic Communications
Mobile: +61 409 550 389
About Savor Group
Savor Group, established in 2011, is one of New Zealand's largest hospitality
businesses with 13 iconic venues in Auckland, including Azabu Ponsonby, Azabu
Mission Bay, Ebisu and Non Solo Pizza, each with its own unique concept,
culture and offering. Savor has a reputation for originality, the quality of
its products and the high standard of service that is consistent across the
company portfolio.
End CA:00367847 For:MOA Type:TRANSACT Time:2021-02-19 09:23:45
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