ACQUISITION
CBH not pulling plug on Sovereign
CBH reassures on its bid to acquire a controlling stake after Sovereign shares slump 7%
Country Bird Holdings (CBH) had no intention to walk away from Sovereign Foods and would resume its efforts to acquire a controlling stake of the company in September, group CEO Marthinus Stander said on Wednesday. His comments followed an unexpected 7% slump in Sovereign’s share price on Wednesday morning to a low of R7.25 from the previous close of R7.85. Other chicken producers Astral and RC remained firm. The fall in Sovereign’s share price, which was in low-volume trade, prompted shareholder activist Chris Logan to call for the board to be replaced. Logan said the board must demonstrate to shareholders how it can at least match the R9-a-share value that CBH is prepared to pay shareholders for Sovereign. "Instead of doing everything they can to thwart the offer, the Sovereign board should encourage CBH and demand whatever it thinks is a full reflection of the value of the company," he said. The Takeover Regulation Panel ruled last year that CBH’s offer, made in September, had la...
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