Brimstone confirms exit from Clover deal
The black-owned investment firm says it will not participate in a consortium seeking to take over SA’s biggest dairy producer
Brimstone Investments confirmed on Friday that it will not be participating in a consortium seeking to acquire SA’s biggest dairy producer Clover, but had agreed on a plan to facilitate its exit. Brimstone was in advanced talks with a replacement black empowerment partner for the consortium, its said on Friday, after giving up on the deal in the wake of protests over the participation of an Israeli company. Brimstone, which was due to have a 15% stake in the MilCo consortium, may still hold a stake in Clover, but was negotiating with International Beer Breweries Limited (IBBL) over a “back-stop” agreement as it seeks a replacement empowerment partner. Under the terms of the proposed agreement, IBBL would acquire Brimstone’s stake on December 31 2019, should Brimstone not find someone else to acquire it. Brimstone announced it was reviewing its participation in February, after lobby group Boycott, Divestment and Sanctions (BDS) concerns over the participation of Israel-based Centra...
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