Israeli food group offers R4.8bn for Clover
A consortium called Milco is offering the SA food producer’s shareholders R25 per share
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.
The deal values Clover at R4.8bn.
The Milco consortium is led by Israel-based Central Bottling Company (CBC), which is offering to buy 59.5% of the SA food producer.
JSE-listed Brimstone is offering to buy 15% of Clover’s shares at R25 each. Other members of the Milco consortium are Ploughshare Investments, which will buy 10.9%, and IncuBev, which will buy 8.3%.
Clover’s management will retain a 6.3% stake.
The food group’s share price jumped 19% to R23.80 on Monday morning after the JSE opened.
CBC is a privately owned international food and beverage group whose subsidiary companies serve more than 160-million consumers worldwide, Monday morning’s statement said.
“CBC is Israel’s leading manufacturer and distributor of beverages and, through its foreign subsidiaries, has manufacturing and distribution operations in Turkey, Romania, and Uzbekistan. CBC, which is also the owner of the Tara dairy, Israel’s second-largest milk processing dairy, produces and distributes its own brands and Müller brands, and it operates the licence for the Müller brand in Romania.”
CBC also owns Gat Foods, a “grove to table” juice operation with customers in more than 70 countries. In addition, CBC works closely with its international franchisors, including The Coca-Cola Company, Carlsberg, Anheuser-Busch InBev, the Müller Group and Diageo.
IncuBev is an international business focused on the food and beverage sectors in sub-Saharan Africa. The shareholders of IncuBev comprise global executives with extensive knowledge, experience and relationships, both in sub-Saharan Africa and the rest of the world, in the dairy and non-alcoholic beverage industry. IncuBev has a network design with access to deep operational, private equity, banking and management consulting expertise, within sub-Saharan Africa and globally.
Ploughshare is a privately owned, independent investment company that is part of a broader international investment group that has investments and expertise in retail, distribution and beverages.