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Brimstone to review Clover acquisition after boycott threats




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.


Karl Gernetzky | Business Live

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





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