Skip to main content

Brimstone to review Clover acquisition after boycott threats

| Supplier news

JSE-listed Brimstone said on Thursday (07/02/2019) that it is reviewing its participation in a consortium seeking to acquire dairy producer Clover, due to protests over the participation of an Israeli company.

Lobby group Boycott, Divestment and Sanctions SA (BDS) has threatened a boycott of Clover due to the consortium being led by Israel-based Central Bottling Company (CBC).

BDS has threatened “direct-action and a militant but peaceful campaign”, should the R4.8bn transaction proceed. BDS said in a statement on Wednesday this could mean disruptions at Clover’s operations.

Clover shareholders have been offered R25 per share — a 25% premium to Friday’s R20 closing price — from a consortium called Milco, which plans to delist it from the JSE.

Brimstone has offered to buy 15% of Clover’s shares, while CBC would take a 59.5% stake. Other members of the Milco consortium are Ploughshare Investments, which will acquire10.9%, and IncuBev, which will buy 8.3%.

Clover’s management will retain a 6.3% stake.

The food group’s share price jumped as much as 19% to R23.80 on Monday after the news. At 11.30am on Thursday, Clover had lost 3.19% to R142.21, but remains 10.75% up for the week.

At the same time, Brimstone’s share price was unchanged at R10




Pin It

Related Articles

Woolworths recalls Country Road mugs that 'brea...

By:  Helena Wasserman – News24 Woolworths has recalled four Country Road mug lines that "unexpectedly break" when hot liquid is poured into them.

Springbok rugby star Manie Libbok partners with...

Woodlands Dairy, creators of the award-winning High Protein Recovery (HPR) drink, has announced an exciting partnership with Springbok rugby player Manie Libbok.

SA's largest poultry group plans tinned chicken...

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...

Hassle free ox tripe, now at Woolies

Woolworths is excited to introduce its latest culinary offering: oven- and pot- ready, ox tripe. 

For the love of food: Checkers introduces a tan...

Checkers has launched a new private label offering, Foodie!, to unleash the inner chef in every home cook. Expertly crafted, Foodie! products take the hassle out of cooking, combining top-quality fresh ingredients to provide a variety of opti...