Capitalworks bid could lead to Sovereign de-listing from the JSE
The two companies say they have entered into an implementation agreement, which will ultimately lead the delisting of Sovereign
Mid-market private-equity business Capitalworks has offered Sovereign shareholders two options, as it seeks to acquire a sizable interest in the poultry producer. The two companies said on Thursday that they had entered into an implementation agreement, which would ultimately lead the de-listing of Sovereign from the JSE. Sovereign’s share price was unchanged on the news on Thursday at R11.75, but the producer had gained 48.36% so far in 2017. Shareholders would either be offered R12 per share, at 7% interest should the cash not be paid by January 1 2018, or a share in a special-interest vehicle at the same price. Irrevocable undertakings in support of the offer representing 50.85% of the offer shares had been obtained on the companies said. Capitalworks expects that Sovereign management and its reinvesting shareholders would benefit from support of a key anchor shareholder. Capitalworks focuses primarily on mid-cap businesses in SA, with Sovereign shareholders also expected to bene...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.