Boycott threat prompts Brimstone to review its R4.8 billion Clover deal

A lobby group has threatened a "militant but peaceful campaign" if the deal goes through.

JSE- listed investment firm Brimstone said that it is reviewing its participation in a consortium that is seeking to acquire dairy producer Clover after protests over the participation on an Israeli company in the deal.

On February 4, Clover Industries said it received a R4.8 billion buyout offer from a consortium of companies called Milco, which offered Clover shareholders R25 per share – representing a 17percent premium to its share price of R21.30 on Monday 15:45 pm.

The Milco consortium is led by Israel-based Central Bottling Company (CBC), which is offering to buy 59.5 percent of Clover. The remainder of the shareholding would be held by Brimstone Investment Corporation (15 percent) and executive management of Clover (6.3 percent).

Boycott, Divestment and Sanctions SA, which is a lobby group, has threatened a boycott of Clover due to the consortium being led by an Israel-based company (CBC). BDS has threatened “direct-action and a militant but peaceful campaign” if the deal goes through.

Brimstone has responded to this threat.

“Having regard to our company’s values driven identity, we have taken note of the widespread outrage in respect of Brimstone’s participation in the proposed purchase of South African company, Clover Industries as announced on Monday, 4 February 2019. Brimstone has therefore decided to review its role in the proposed transaction,” the company said in a statement.