Cautionary announcement issued

CLOVER, South Africa’s biggest diary processor, issued a cautionary announcement yesterday about negotiations, saying they would affect the share price, without revealing with whom. Clover has previously cautioned shareholders on the negotiations amid speculation of a takeover. “The company is still in negotiations which, if successfully concluded, may have a material effect on the price of the company’s securities,” it said. Previously, Clover said it planned to open plants in Nigeria and Angola once volumes on the continent increased. The company agreed to buy Dairybelle, a South African yogurt and milk producer. The Dairybelle acquisition was expected to give Clover the opportunity to lower costs in the Western Cape, where the company previously did not have manufacturing facilities, the company previously said. Shares rose 1.01 percent to close at R20 yesterday. – Dineo Faku