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The participation of an Israeli bottling company has prompted an outcry.
The participation of an Israeli bottling company has prompted an outcry.

Brimstone to review Clover acquisition after boycott threats

RETAILER NEWS

By Karl Gernetzky - Feb 8th, 09:35

JSE-listed Brimstone said 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.
Business Live 

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