A total of 14156million 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 about 30000 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 listing and unbundling follows the announcement made by Mvela Group chief executive 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.

Mvela Group chairperson Mikki Xayiya 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’s results for the year to end June 2010 showed revenues up 12percent to R4,2billion and earnings before interest, tax, depreciation and amortisation up 31percent to R465million.

The company has a balanced earnings profile through its various areas of operation with clients from both the private and government sectors.

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