Clover shoots up 13% on news it may be acquired
The consumer goods group said on Friday it had been approached by a third party interested in acquiring its entire share capital
JSE-listed Clover Industries’ share price shot as much as 13.55% to R16.01 on Friday morning, after the company reported it was in negotiations with a third party for its potential acquisition. SA’s largest dairy producer, which has a market capitalisation of R3bn, is in the midst of a pivot from its core dairy business to focus on value-added products, as well as non-dairy food products. In September, the group reported its first loss in more than a decade after writing off a loan to its recently unbundled subsidiary, Dairy Farmers of SA (DFSA). Clover took a R439m hit, which then equated to almost 17% of its market capitalisation, but maintained that this write-off of debt was an accounting measure, and masked underlying improvements in its performance, according to CEO Johann Vorster at the time. The interested party is unlikely to be Tiger Brands, which has its own share of problems, and is trying to bring down the number of products already in its portfolio, said Ron Klipin, po...
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