Country Foods snaps up more in Sovereign.
Country Birds has upped its stake in Sovereign Foods to 25.2 percent as it seeks to buy the listed food company in a hostile takeover.
|||Johannesburg - Country Birds has upped its stake in Sovereign Foods to 25.2 percent as it seeks to buy the listed food company in a hostile takeover.
In a statement issued on Monday, Sovereign says Country Bird and its concert parties increased their stake in Sovereign.
This increases rival Country Bird’s stake from 17.7 percent last month.
Earlier in July, Country Bird announced it had tabled a R9 a share offer to take over the controlling stake in the company.
However, shareholders said the offer excluded a dividend or interest payments – critical in what could be a drawn out battle for control. The offer by Country Bird values Sovereign Foods at about R685 million.
The success of Country Bird’s buyout offer will depend on the response by institutional shareholders, in particular Prudential, Old Mutual and Sanlam, and investment company RECM & Calibre. The shareholders represent about 55 percent of Sovereign.
Read also: Country Bird seeks control of Sovereign
Country Bird wants to block a proposed scheme that threatens to put control of Sovereign Foods out of its reach. That meeting was set for July 25, but was postponed to October.
IOL