Wait and see

Finweek English Edition - - Marketplace -

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.

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