Mvelaserve, which is being unbundled from Mvelaphanda Group, is to list on the main board of the JSE in the “Business Support Services” sector on Monday. A total of 141.56 million Mvelaserve ordinary shares of no par value each will be listed.

    Mvelaserve is a leading provider of integrated outsourced business support  services in South Africa through its network of operating subsidiaries, employing approximately 30,000 people.

    It offers a wide range of services in the areas of facilities management, security, catering and cleaning. It also provides services in the gambling, pie manufacturing, franchising and freight markets.

   The Mvelaserve group operates four business units – facilities management, security, catering and cleaning and diversified services.

     The Mvelaserve listing and unbundling follows the announcement made by Mvela Group CEO Yolanda Cuba last year of its commitment to unlock value for Mvela Group shareholders through the realisation and unbundling of the group’s assets. The group unbundled its interest in Life Healthcare Group Holdings and listed Life Healthcare on the JSE in June 2010.

    Mvela directors undertook an extensive strategic review of their investments and have concluded that it is preferable for Mvelaserve to be a separately listed, focused services business.

    The Mvelaserve listing will enhance the strategic flexibility of the Mvelaserve business and will enable it to embark on its own strategy to grow both organically and by acquisition.

   In addition, the listing will provide a listed reference price for Mvelaserve and will allow investors to attribute appropriate share price ratings to both Mvela Group and Mvelaserve, aligned to the specific dynamics of each of the respective companies, Mvela said when announcing its plans for Mvelaserve.

    Mikki Xayiya, Executive Chairman of Mvela Group, said at that time the announcement was made that this is another major step forward in the group’s stated strategy to unlock value for shareholders  through the unbundling and realisation of the group’s assets.

    “Mvelaserve is a strong business with leading market positions, an impressive track record, strong financial performance and an experienced and entrepreneurial management team. It is well disposed to stand alone as a listed entity.”

    Mvelaserve’s results for the year to end June 2010 showed revenues up 12% to 4.2 billion rand and earnings before interest, tax, depreciation and amortisation up 31%  to 465 million rand. The company has a balanced earnings profile through its various areas  of operation with clients from both the private and government sectors.

    TFMC, the integrated facilities management business, is the largest in South Africa and provides total integrated facilities management services, including corporate real estate management and professional engineering services which allow clients to focus on their core business.

     Protea Coin, the security business, is a leading provider of integrated risk reduction solutions with three primary divisions being assets-in-transit, guarding and technical providing high-tech security solutions.

     Royalserve houses the catering and cleaning businesses. Royalserve Catering is an outsourced food solutions company and Royalserve Cleaning is the third largest cleaning company in South Africa with clients across many sectors.

     Other Mvelaserve businesses include Khuseti, the franchisor of the King Pie brand, Zonke, the sole provider of the Central Electronic Monitoring System for the limited payout gambling machines and Contract Forwarding, an international freight forwarding and customs broker.

     Jorge Ferreira, Group CEO of Mvelaserve, said recently that Mvelaserve’s strategy is to continue building its business as the recognised leading provider of outsourced support services in South Africa and the rest of the continent.

   “We believe this will be achieved through our well established and recognized brands, strong portfolio of blue chip clients and leading positions in attractive markets. The separate listing of Mvelaserve will bring benefits from an enhanced public profile and provide the Company with a further source of capital to facilitate future expansion if required.”

    The group said there is no intention to raise fresh capital at the listing as the company is well capitalised for its current requirements and has strong cash flows.