Wait and see
After a lengthy and ultimately successful fight against the Country Bird takeover attempt, Sovereign Foods is now proposing a delisting of the company at 1 200c a share. Directors have been selling at this level – they have sold around R50m worth of shares at 1 200c a share. However, if I was a shareholder I would wait as Country Bird holds just under 35% of the company, and it has two choices here. It could either take the 1 200c and make a juicy profit for the company, or it could make another offer at a higher price for Sovereign. Due to takeover rules it will have to wait another month before making the new offer, but the current 1 200c offer will still be valid then. So, wait for Country Bird to either signal that it’s taking the money or that it’s making a higher offer, in which case that’ll be the better deal.
At least some people are not worried at all about the next 30 years of the BAT business model.