Skip to main content

Clover deal with Milco delayed

| Supplier news

Consortium Milco’s acquisition of listed foods and beverages group Clover Industries has been delayed and will no longer be finalised by Friday next week as previously anticipated, Clover said on Friday, 26 April 2019.

The deal, announced in February, will see the consortium, led by Tel Aviv-based Central Bottling Company, acquire the entire issued share capital of Clover for R25 per share.

However, investment company Brimstone caved in to pressure from pro-Palestine activist group Boycott Divestment Sanctions South Africa and exited the consortium. Brimstone is currently in negotiations with a potential replacement black economic empowerment (BEE) investor to take up its 15% in the consortium.  

Brimstone said earlier in April that it had sealed an agreement with MilCo and International Beer Breweries Limited (IBBL), a subsidiary of CBC, “to facilitate Brimstone’s exit from its participation in the Clover transaction”. IBBL had agreed to acquire Brimstone’s interest in Milco on December 31 if by that date Brimstone has not been able to secure the replacement BEE investor.

In a statement on Friday, Clover announced that the implementation of the deal would not take place on the dates suggested in a circular to shareholders about the transaction. “In particular, the anticipated finalisation date of May 3 2019 will be delayed,” Clover said.

Clover said it would announce new dates for the implementation of the transaction at a later stage.

The deal is still subject to the approval of competition authorities.




Pin It

Related Articles

By: Nicola Mawson - IOL JSE-listed Tiger Brands has exited its deciduous canned fruit business five years after it said it could do so for R1 while also setting up a R150 million community trust to benefit the Langeberg community.
A global wave of home appliance recalls, including millions of air fryer models sold by major brands has cast a harsh spotlight on the growing danger of faulty kitchen devices and the rising tide of personal injury claims they leave in their wake.
By Yashvir Maharaj – Insights Survey There has been an increase in demand for female-focused healthcare products, with the Vitamins industry being no exception to this movement.
The reimagined Engen Xtreme lubricants range roared onto the scene with a high-impact launch at The Galleria in Sandton this month, where industry professionals, mechanics, and key media were treated to an exclusive preview of the brand’s powerful n…
Engen has unveiled a bold new look for its Xtreme lubricants range, positioning it as a premium solution for South African motorists. Designed to meet the demands of local roads and climate, the enhanced Xtreme range offers superior performance, adv…