Clover: Israeli link meeting resistance
On paper, bid to build food-brands hub would have been boosted by Milco’s plans to accelerate sales and efficiency
The market is nervously considering the implications of empowerment company Brimstone’s decision to review its role in the much-awaited takeover of local dairy giant Clover. Last week Israel-based Central Bottling Company (CBC), owner of a wide range of beverage brands, pitched a R4.8bn takeover deal for Clover via the newly formed Milco consortium. Milco breaks down into lead investor International Beer Breweries (IBB), with Sub-Saharan food and beverages specialist IncuBev and Ploughshare Investments as junior partners (with stakes of 8.3% and 10.9% respectively). IBB is a subsidiary of CBC which, though Israel-based, has operations in Turkey, Romania, and Uzbekistan. International franchisers include The Coca-Cola Company, Carlsberg, AB InBev, the Müller Group and Diageo. Brimstone (with a 15% stake) and Clover’s management team (with a 6.3% stake) were also named as participants in the deal. On paper, Brimstone’s concerted effort to build a food-brands hub — with existing invest...
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