BUSINESS OF ACQUISITION

BRIMSTONE HAS SECOND THOUGHTS

JSE-LISTED black-controlled investment holding company Brimstone Investment Corporation said yesterday that it had decided to review its role in the proposed transaction of acquiring a 15 percent stake in Clover Industries after widespread outrage emerged from a concerned group. This is after the Boycott, Divestment, Sanctions against Israel in South Africa (BDS SA), an organisation that promotes solidarity with Palestinians, said it was against the deal, which was being led by an Israeli beverage company, the Central Bottling Company (CBC). CBC is the leader of the newly formed consortium, Milco, which is bidding to buy Clover’s entire issued capital for R25 a share, valuing Clover at R4.8 billion. Post-transaction, Milco would be owned 60 percent by CBC and 15 percent by Brimstone. “Having regard to our company’s values-driven identity, Brimstone has decided to review its role in the proposed transaction,” Brimstone said. |