POULTRY group Sovereign Food Investments has tweaked its controversial black economic empowerment (BEE) deal, thereby saving a bundle in costs and precluding a competitor from "grossly abusing" an appraisal rights mechanism.The appraisal rights, which were tagged in Sovereign’s initial empowerment deal, allowed shareholders to participate in a share buyback.The empowerment deal was approved by 85% of shareholders, but was criticised for including white management rather than broad-based participants.A number of dissenting shareholders, who represent about 10% of Sovereign’s shares in issue, indicated their intention to exercise their appraisal rights at a general meeting last month.Sovereign’s new proposal, supported by 70% of shareholders, involves a new empowerment deal on similar economic terms, but with a revised repurchase offer envisaging the acquisition of a maximum 3.81-million shares (5% of the issued shares).The total cost will be R32.4m — inferring a buyout price of 850c ...
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