Organisational restructuring

CLOVER Industries has informed its shareholders that it is in the process of an organisational restructuring of its business. The process involves transferring all the low margin business to its wholly-owned subsidiary, the Dairy Farmers of South Africa Proprietary (DFSA) under a written transfer of business agreement with effect from April 1. The group said in exchange for the transfer of the low margin business, DFSA would allot and issue DFSA shares to Clover. Clover, through this agreement, will transfer all employees in the existing milk procurement and milk collection department; and all agreements with Clover’s customers relating only to the low margin business to DFSA. The group said the restructuring involved Clover achieving its objectives of developing higher margin, value added products in dairy and other related food categories and to substantially reduce its exposure to the cyclicality of its low margin business in future. – Sandile Mchunu