- September 21, 2005
- Posted by: admin
- Category: Historical Investments
In a formal statement issued by Clover and Hosken Consolidated investments (HCI), both groups confirmed their partnership as official. Clover Industries Limited (CIL) ordinary shareholders have approved the amendment of the Statutes and the Memorandum of Association of the company and approved the subscription agreement with HCI.
In terms of the deal, HCI will subscribe 25,1% interest (19,3 million ordinary shares) and 25 million preference shares in CIL through its wholly owned subsidiary, Mettle Food & Beverages Investment (Pty) Ltd. The total investment value amounts to R91,8 million, payable to CIL in cash. Ordinary shares will be issued and will not be linked to any milk delivery agreements, as is the case with the balance of the shareholding. According to Elias Mphandle, executive director of HCI: “The transaction has enabled HCI to develop its existing relationship with Clover into a formal partnership as a shareholder in the business. This provides HCI with a powerful motivation to contribute to the growth of Clover at all levels.”
CIL’s Chairman Dr Vos Grey says: “Our change in strategic direction started four years ago to provide Clover with a solid platform to respond to the challenges in the South African business environment. One such challenge was to form a mutually beneficial black economic empowerment (BEE) partnership”. Grey continues: “The positive contribution they will bring to the table and the increased Broad-Based Black Economic Empowerment (BBBEE) grading Clover will obtain as a result of the partnership, made them a most suitable choice.” Clover’s empowerment grading will be increased to a black-influenced company with a satisfactory contribution to BBBEE.
Source: CLover press release