Brimstone to review Clover acquisition after boycott threats
The participation of an Israeli bottling company has prompted an outcry
JSE-listed Brimstone said on Thursday that it is reviewing its participation in a consortium seeking to to acquire dairy producer Clover, due to protests over the participation of an Israeli company.
Lobby group Boycott, Divestment and Sanctions SA (BDS) has threatened a boycott of Clover due to the consortium being led by Israel-based Central Bottling Company (CBC).
BDS has threatened “direct-action and a militant but peaceful campaign”, should the R4.8bn transaction proceed. BDS said in a statement on Wednesday this could mean disruptions at Clover’s operations.
Clover shareholders have been offered R25 per share — a 25% premium to Friday’s R20 closing price — from a consortium called Milco, which plans to delist it from the JSE.
Brimstone has offered to buy 15% of Clover’s shares, while CBC would take a 59.5% stake. Other members of the Milco consortium are Ploughshare Investments, which will acquire10.9%, and IncuBev, which will buy 8.3%.
Clover’s management will retain a 6.3% stake.
The food group’s share price jumped as much as 19% to R23.80 on Monday after the news. At 11.30am on Thursday, Clover had lost 3.19% to R142.21, but remains 10.75% up for the week.
At the same time, Brimstone’s share price was unchanged at R10.