The company said that it would acquire up to 100% of the issued share capital of Ububele through a share swap of 3465 Milkworx shares for every 100 Ububele shares held with effect from the beginning of this month.
The directors of both Milkworx and Ububele had identified key areas of synergy between the two companies, including distribution and marketing networks, production facilities and a geographic footprint, the statement said.
The acquisition and offer will constitute a change in control and Milkworx will appoint the financial director of Ububele as the financial director of the new group.
Ububele also announced its approval for listing by the AltX advisory committee which will be done by way of a reverse listing into Milkworx and then a change of the company's name to Ububele.
“We will on the day of the listing take control,” said Ububele CEO Theo Kleinhans. The company expects to list on AltX at the end of next month or in September.
“Our listing on AltX is a tremendous milestone in the history of Ububele. Over the past five years the business has grown exponentially both in terms of revenue and investor returns,” said Kleinhans.
Source: Business Day
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