IXOPO dairy farmer and Clover SA chairperson John Bredin said producers he has spoken to welcomed the R91,8 million deal which will see Hosken Consolidated Investments (HCI) – an empowerment investment group – acquiring 25,1% of Clover Industries.

Bredin said the deal would be a positive move towards empowerment for Clover Industries, which owns dairy company Clover SA and 45% of Danone Clover.

Clover Industries will issue 19,3 million shares at Rl each to HCI and 25 million cumulative and redeemable preference shares at R2,90 each- The purchase is subject to certain conditions: HCI has yet to complete a due diligence exercise and Clover Industries is seeking independent third-party confirmation on the fairness of the subscription price in respect of the ordinary shares.

Clover Industries` memorandum and articles of association also need to be amended. Its shareholders still have to approve the transaction.

Source: Farmer’s Weekly – Fanie de Villiers