Few cheers from the market for Clover’s new structure
By Robert Laing - Jul 6th 2017, 10:27
Food producer Clover’s share price fell 4% to R16.30 on Thursday morning after it announced it had completed moving control of its milk trading arm to dairy farmers.
Clover announced in December it intended to create separate company, Dairy Farmers of SA (DFSA), to address unhappiness among milk producers over how prices were set.
Clover said on Thursday that milk producers had been issued with B shares in DFSA, representing 74% of voting rights. It retained 26% of the voting rights via A shares it would retain.
Explaining the rationale for the separation in January, Clover said: "There is a misconception by capital market investors and other market participants that Clover, in setting the price for raw milk, may favour producers at the expense of profitability. There is likewise a misconception by producers that Clover, in setting the price for raw milk, is improving profitability at the expense of producers."
Making DFSA an independent company "will result in the raw milk price being determined by a party other than Clover".© BusinessLIVE MMXVII
Clover, Milco merger puts 657 jobs on the line
17/09/2019 - 10:05
A total of 657 existing jobs will be on the line at Clover Industries in the next two years if the R4.8 billion merger between the JSE-listed dairy company and Israel-based Milco is approved by the Competition Tribunal.
Clover's R4.7bn deal gets Competition Commission nod
22/07/2019 - 10:12
The Competition Commission has approved, with conditions, the R4.8bn sale of branded foods and beverages group Clover Industries to a consortium led by Tel Aviv-based Central Bottling Company, Clover said on Friday.
Clover set to return to profit in year to June
13/05/2019 - 10:15
Clover, which makes dairy-based foods and beverages, says it will return to profit in the year ending June 2019 after making its first annual loss in more than a decade in the prior year.
Brimstone confirms exit from Clover deal
12/04/2019 - 10:01
Brimstone Investments confirmed that it will not be participating in a consortium seeking to acquire SA’s biggest dairy producer Clover, but had agreed on a plan to facilitate its exit.
Sugar tax didn't sweeten the deal for Clover
05/03/2019 - 11:02
The sugar tax may be aimed at reducing consumption, but it ate its way into Clover's profits, the group said on Tuesday.