RCL Foods, whose brands include Selati sugar, Sunbake bread and Yum Yum peanut butter, says it is restructuring its portfolio to deliver sustainable earnings.

The spinning off of the Rainbow Chicken business will be completed with the distribution of newly listed shares to RCL shareholders on a one-to-one basis. The shares will start trading on July 1.

"Stepping out as a stand-alone entity marks a significant milestone for Rainbow, carving out a unique and competitive position in the market," Chief Executive Officer Marthinus Stander said in a statement.

Rainbow Chicken was founded in 1960 as a small family-owned business and has grown to become one of SA’s largest poultry producers, with R13.4 billion ($734.31 million)revenue in 2023.

The company is a fully integrated chicken meat producer, operating 165 farms and several processing plants as well as feed mills.

--Reuters--