Quantum rebuffs Rudland board bid
• Dubai-based investment firm Braemar also asks for chair and two directors to be removed
Hamish Rudland, the brother of controversial tobacco baron Simon Rudland, has demanded a seat on the board of animal feeds and poultry business Quantum Foods and the removal of the chair and two directors.
Dubai-based investment firm Braemar, which is believed to be owned by the Rudlands’ mother, holds a 30.8% stake in Quantum, which owns the Nulaid egg brand.
The Rudlands are part of the politically and economically powerful elite in Zimbabwe, with Simon facing accusations in court by the SA Revenue Service (Sars) that he moved R3bn out of SA without paying tax. The Daily Maverick has also reported on illicit tobacco, moneylaundering and gold smuggling allegations against Simon.
A letter to Quantum demands that a shareholder meeting be held and Hamish elected to the board. It also calls for the removal of chair Andre
Hanekom and directors Gary Vaughan-Smith and Larry Riddle.
Quantum said in a statement it would not consider the request for a meeting. “The company has taken legal advice and is of the view that the demand is not legally compliant.
“In the circumstances the board will not be convening a shareholders’ meeting.”
The letter arrived within days of Quantum shares rocketing more than 72% a day after Country Bird Holdings (CBH) increased its stake, a move that led to analysts, including Smalltalkdaily’s Anthony Clark, mentioning the possibility of a takeover battle as happened in 2020.
Quantum shares more than doubled between the closing price on March 1 and the closing
price on March 7, while the volume of trades increased exponentially.
The two biggest shareholders of Quantum are Braemar and foreign private equity fund Silverlands II (34.2%).
The third-biggest shareholder is CBH, which now owns 15.6% after it bought Astral’s 9.8% stake in CBH in an overthe-counter deal on Monday.
That makes CBH a possible kingmaker between the two
larger shareholders in the event of a takeover bid.
However, that would be a breach of takeover regulation panel rules and on Wednesday Quantum reported that CBH had said in a letter it was not looking to take over the group.
It is not clear why CBH was willing to pay an average 70% premium to Astral for its stake.
CBH has also sought to buy out other shareholders and has been willing to pay well above the average price, according to a Quantum statement.
CBH’s previous attempt to take over the firm in a hostile bid in 2020 was thwarted. It then sold much of its stake in Quantum to Braemar.
Quantum, based in Wellington in the Western Cape, supplies many independent chicken producers with day-old chicks
that are reared and slaughtered for meat.
The Rudlands, through another of their companies, Magister, attempted to buy embattled sugar producer Tongaat Hulett, but the deal was scuppered in 2022 when the takeover regulation panel found they had breached regulations.
Braemar also had a stake in Tongaat before Magister’s attempted takeover.
The brothers denied business links at the time.
JSE-listed Sasfin Bank is now facing a R4.9bn tax damages claim from Sars an amount that far exceeds its market capitalisation after staff members allegedly aided Simon Rudland and associates to move money out of SA in breach of exchange controls.
QUANTUM SAID IT
HAS TAKEN LEGAL
ADVICE AND WOULD
NOT CONSIDER
THE REQUEST
FOR A MEETING