Sovereign drops as Country Bird’s hostile takeover offer is ruled unlawful
Sovereign Food’s share price plunged 15% to R7.77 on Tuesday, after it announced Country Bird’s R9 per share hostile takeover offer had been ruled unlawful. Sovereign’s management issued a statement saying the takeover special committee unanimously decided Country Bird’s "purported waiver of the suspensive condition pertaining to the minimum acceptances" contravened the Companies Act and JSE regulations. Because of this ruling, Sovereign said shareholders who accepted Country Bird’s offer would not be permitted to complete the R9 per share deal. Country Bird is required to pay the costs of the takeover special committee, Sovereign said in its statement.
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