Skip to main content

Sovereign Foods shareholders approve delisting offer

| Supplier news

Sovereign Foods (JSE: SOV) announced on Monday, the outcome of the special General Meeting of shareholders held on 9 October 2017.

In August 2017, Sovereign Foods received a firm intention from a special purpose vehicle controlled by Capitalworks (Bidco) to acquire Sovereign Foods by way of a R907 million cash offer to Sovereign shareholders.

Bidco made two separate but concurrent cash offers to acquire the Sovereign shares (excluding treasury shares), by way of a scheme of arrangement (scheme) and a general offer. The offer was priced at R12 cash per Sovereign share, which represents a 33.33% premium to the failed offer from Country Bird Holdings (CBH) last year, which was priced at R9 per Sovereign share.

While it has been incorrectly reported in the media that the offer has been made “in conjunction with Sovereign board and management...” and/or that the offer is a “management buy-out”, this is not the case. The offer has been made solely by Capitalworks, through Bidco, although the Sovereign board and management are supportive of the offer.

On Monday, shareholders holding 89,84% of the total Sovereign shares in issue (including treasury shares), were present in person or represented at the general meeting.  

The scheme was approved with approximately 100% of votes cast at the general meeting. The scheme required at least 75% approval in terms of the Companies Act. 

In terms of the scheme, and subject to obtaining the outstanding regulatory approvals, ownership of Sovereign Foods will pass to Bidco who will acquire 100% of the Sovereign shares in issue (excluding treasury shares). As a result, it is anticipated that Sovereign Foods will be delisted from the JSE later this year. 

“Sovereign Foods is pleased with the voting result of the General Meeting as it is indicative of the overwhelming support by Sovereign shareholders for the offer,” says Chris Coombes, Sovereign Foods CEO.



Pin It

Related Articles

By: Nompilo Goba and Jacqueline Mackenzie – Business Live Oceana, the owner of the canned fish brand, has reported a big surge in acceptance among higher-income shoppers
By:  Helena Wasserman – News24 Woolworths has recalled four Country Road mug lines that "unexpectedly break" when hot liquid is poured into them.
Woodlands Dairy, creators of the award-winning High Protein Recovery (HPR) drink, has announced an exciting partnership with Springbok rugby player Manie Libbok.
By: Nick Wilson – News24 Astral Foods, SA's largest poultry producer, is exploring the option of trialling canned chicken as an alternative to the smaller-format pilchard and sardine products making serious inroads in the local animal protein mar...
Woolworths is excited to introduce its latest culinary offering: oven- and pot- ready, ox tripe.