Within hours of the Takeover Regulation Panel ruling on Tuesday that the offer by Country Bird Holdings (CBH) for Sovereign Foods had lapsed, the JSE-listed poultry producer lost more than 7% of the value of its shares. The share price dropped from R9.19 to close the day 7.4% lower at R8.51. Shareholder activist Albie Cilliers said he was surprised the share had not dropped further and that its relative strength suggested a buyer had emerged to mop up shares as soon as the ruling had been announced. "Given the uncertainty now facing the company, it’s difficult to imagine who could be buying or why; we will probably find out in the coming days or weeks," Cilliers said. About 200 shareholders, holding 13.4% of the Sovereign shares, had accepted CBH’s R9 offer and were waiting completion of the deal to receive their cash. The ruling means CBH will not be allowed to acquire these shares. CBH will hold onto the 34.1% block that it accumulated in the market before Sovereign sought the rul...
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