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 benefit from the elimination of listing costs, the companies said.