The Citizen (KZN)

Brimstone has second thoughts about Clover

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South Africa’s Brimstone Investment Corporatio­n is reviewing its role in a proposed R4.8 billion buyout of dairy firm Clover Industries after opposition from an anti-Israel boycott and divestment group.

Shares in Clover, which processes products including yoghurt and olive oil, fell nearly 10% yesterday after Brimstone, which has a 15% stake in a consortium offering to buy the firm, said it was reconsider­ing due to “widespread outrage”.

Brimstone said in a statement: “Having regard to our company’s value-driven identity, we take note of the widespread outrage in respect of Brimstone’s participat­ion in the proposed purchase of … Clover Industries Limited.

“Brimstone has decided to review its role in the proposed transactio­n.”

On Wednesday, Boycott, Divestment, Sanctions against Israel in South Africa (BDS), an organisati­on that promotes solidarity with Palestinia­ns, said it opposed the deal, which is being led by an Israeli beverage firm, the Central Bottling Company (CBC).

BDS had no immediate comment yesterday and spokespeop­le for CBC and Clover were not immediatel­y available for comment.

Boycott and divestment campaigns have a history of success in South Africa after an internatio­nal campaign against the apartheid regime.

Brimstone was one of the minority partners in the deal, which marked the first firm offer for Clover after months of takeover talks with numerous firms.

Its decision to review its role in the offer, which had prompted a 20% jump in Clover shares, casts some doubt on the deal, with Clover shares falling 9.78% before paring the losses to trade down 6.43% yesterday morning. –

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