Or­gan­i­sa­tional re­struc­tur­ing

The Star Early Edition - - COMPANIES -

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

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