SOVEREIGN STAKE
Country Bird takes wait and see stance
A counteroffer above R12 is the only thing that might save Sovereign from being delisted
Country Bird Holdings remains interested in Sovereign Foods but says it will have to wait until it has further information on the R12-a-share offer from private equity firm Capitalworks before deciding what to do with its 34% stake in the poultry producer. A counteroffer above R12 is the only thing that might save Sovereign from being delisted. While there would be synergies between Sovereign and Country Bird Holdings operations, there is scope at property-rich Sovereign for the sort of cost-cutting private equity players thrive on. Capitalworks’s offer to Sovereign shareholders is structured to secure the delisting either through a scheme of arrangement that will need 75% support, or a general offer, which will only need the support of 50% plus one shareholder. In June, Capitalworks, which was established in 2006 by former Brait executive Chad Smart, led the delisting of Pet-min following the implementation of a similarly structured offer to shareholders.On Thursday, the private eq...
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