RU­MOURS ABOUND

Finweek English Edition - - INVESTMENT -

A Sens an­nounce­ment from Clover* merely stat­ing that the com­pany is in “ne­go­ti­a­tions” didn’t do any­thing for the share price but it did get spec­u­la­tions go­ing. The com­pany could be mak­ing an ac­qui­si­tion and, as a share­holder, that is my hope. Clover has strong cash f low and dis­tri­bu­tion, and now needs to start buy­ing brands to plug into its dis­tri­bu­tion net­work. How­ever, other the­o­ries in­clude the com­pany be­ing bought by ei­ther Pioneer Foods or RCL Foods (the old Rain­bow which now has Rem­gro as a 69.5% share­holder). I have writ­ten be­fore that RCL needs some top brands and the fit would be great for RCL. That said, I never like it when com­pa­nies that I own and ad­mire are taken out. Sure, I get a quick spurt of upside, but then I lose the hold­ing and longer-term upside as it gets delisted.

Jo­han­nes­burg Stock

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