Clover Industries to delist from the JSE
Following the approval by competition authorities of its takeover by Milco.
Food and beverage group Clover Industries will delist on October 9, following the competition authorities’ September approval of consortium Milco’s R4.8 billion bid.
The delisting from the Johannesburg Stock Exchange ends Clover’s nine-year-long listing on the domestic bourse.
The Competition Tribunal approved the takeover of Clover by Milco consortium, which is led by Tel Aviv-based Central Bottling Company (CBC).
The deal between Clover and the Milco was initially announced in February 2019, wherein a consortium led by CBC offered to buy 59.5 percent of Clover. The remainder of the shareholding would be held by investment holding company Brimstone Investment Corporation (15 percent) and executive management of Clover (6.3 percent).
However, Brimstone caved into pressure from a pro-Palestine activist group Boycott Divestment Sanctions South Africa, as it announced this month that it will no longer be participating in the deal.
The tribunal, however, has put a three-year moratorium on retrenching 516 workers, instead of the two years proposed by Milco and Clover.
The tribunal initially had concerns that the merger would result in 516 workers being retrenched related to the completion of Project Sencillo, a Clover project underway to ensure the better utilisation of its assets (factories, production lines, warehouses and trucks), the completion of which is expected to take up to five years.
Clover has said it may appeal the tribunal’s decision, though it said any appeal would not affect the implementation of the merger.