MilCo brushes aside Brimstone threat to dump Clover alliance
Brimstone’s bombshell leads to Clover’s share price dropping by the most since October
The rest of the consortium seeking to take over Clover, the country’s biggest dairy producer, reiterated its commitment to the proposed transaction, easing concern that it may be scuppered by its empowerment partner, which said it was reconsidering its participation over the involvement of an Israeli company. Brimstone, which was due to have a 15% stake in the MilCo consortium, dropped a bombshell on Thursday, saying it had noted "widespread outrage" over its proposed participation in the R4.8bn deal. On Monday, the JSE-listed company’s CEO, Mustaq Brey, was still hailing the transaction, saying that it would bring foreign direct investment that SA needed "if we wish to achieve the economic freedom our country deserves". Its new stance, which came after threats from lobby group Boycott, Divestment and Sanctions SA (BDS) over the participation of Israel-based Central Bottling Company, led to Clover’s share price dropping by the most since October. The Israeli company has a 59.5% stak...