Sovereign expecting a loss, whether buyback and BEE deal go ahead or not
SOVEREIGN Foods, the company contesting a takeover offer from Country Bird, has posted a trading update warning of losses.While sales rose 35% in the interim period, Monday’s Sens statement said, costs increased as well, as the drought and a weak rand hit feed prices.Sovereign — whose board has mounted a legal challenge to the bid from Country Bird, in a move that has drawn widespread criticism — gave estimates for the loss and headline loss per share under two different scenarios:READ THIS: COMPANY COMMENT: Sovereign; FuturegrowthAND THIS: Sovereign board in ‘last-ditch’ moveIf the company’s share buyback, empowerment deal and new executive remuneration policy go ahead, a loss per share and headline loss per share of between 38.5c and 47.5c is expected, compared with earnings per share (EPS) of 89.6c and headline earnings per share (HEPS) of 89.7c a year earlier.If the buyback, empowerment deal and new remuneration policy are not implemented, the loss per share and headline loss ...
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