Sovereign in Country Bird's sights

But it said in a surprise announcement after the market closed late on Wednesday, 20 May 2009, that it did not see Afgri as part of the deal.

Having built up a stake in Sovereign, Country Bird said it now had the appetite to acquire the whole company, whose shareholders now potentially have to deal with two major transactions from two competitors.

Country Bird said it was considering “potentially extending an offer to all shareholders of Sovereign Foods to acquire the entire issued share capital, which offer would potentially be implemented to the exclusion of the proposed Afgri transaction”.

Afgri said last week it wanted to reverse list its Afgri Foods, which houses the poultry, feed milling and edible oil businesses, into Sovereign in a deal in which the group would eventually own 77% of the enlarged entity.

The reverse listing is intended to fulfil Afgri's plan to become a major agricultural services and food manufacturing company.

Afgri CEO Chris Venter acknowledged that the latest twist to the control of Sovereign was “interesting” but said his group was convinced that it had a credible business case that was attractive to Sovereign shareholders.

Source: Business Day

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