THE BOTTOM LINE
Would you Riskowitz it all for a slice of Domino’s Pizza?
Investor has ploughed millions into troubled holding company Taste Holdings, pushing his stake above 90%
The future of fast food and jewellery group Taste Holdings is now firmly in the hands of Sean Riskowitz after his Riskowitz Value Fund (RVF) underwrote the group’s new R132m rights issue.
Riskowitz saved the troubled company last year when RVF underwrote a R398m rights offer, giving it a 66% holding in the group.
Last year’s rights offer gave RVF control, but the latest one, which was approved at a general meeting on Friday, could easily push its holding to over 90%. This meant it would not need the approval of minority shareholders if it wanted to take it off the JSE.
Taste chairperson Grant Pattison denied such a move was on the cards. He nevertheless admitted he only spoke for the board and not its major shareholder – who might have other ideas.
Though Riskowitz has yet to announce if he planned to delist Taste, what is clear is that he has faith in the group. Aside from underwriting two rights offers, RVF also provided Taste with a R200m in loan financing.
Even so, a lot has to go right for Taste to turn itself around. It has to sort out its problems at its Domino’s Pizza operation and achieve critical mass in rolling out Starbucks coffee shops.
Time will tell if Riskowitz found value in investing in Taste or if he made an expensive mistake.