February 4, 2019 / 7:15 AM / 7 months ago

South Africa's Clover Industries shares soar on $359 million buyout offer

(Reuters) - Shares of Clover Industries Ltd (CLRJ.J) jumped over 20 percent on Monday after it announced a 4.8 billion rand ($358.99 million) buyout offer from a consortium of companies, including Brimstone Investment Corporation Ltd (BRTJ.J) and the executive management of Clover.

The proposed deal from Milco SA Proprietary Ltd offers 25 rand per share to the dairy company’s shareholders, a 25 percent premium to Clover’s closing share price on Friday.

Clover, which processes products such as yoghurt, beverages, cheese and olive oil, had in October said it was in talks with an unnamed firm that intended to acquire all its shares just as it was recovering from a drought and depressed milk prices.

The company, which spun off its raw milk business last year, has focused on developing higher margin, value-added branded food and beverages to move away from lower-margin commoditised dairy products.

Reporting by Devika Syamnath in Bengaluru; Editing by Arun Koyyur

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