Sovereign sees losses in takeover bid
SOVEREIGN Food, which was fending off a hostile bid by Country Bird, yesterday told its shareholders that it expected to report a loss for the six months to August.
The firm would hold an annual general meeting on October 19 to consider the offer. It said in light of the offer there remained uncertainty regarding the accounting treatment of the costs in the interims.
It said it expected earnings per share (EPS) and headline earnings per share (Heps) for the six months to August to be a loss of between 38.5c and 47.5c if the deal went ahead.
Sovereign said if the transactions were not implemented, the company’s EPS and Heps were expected to be a loss of between 47.5c and 56.5c.
The company reported losses of 89.6c and 89.7c in EPS and Heps respectively last year.
“The expected EPS and Heps… for the six months to August include extra-ordinary, once-off costs associated with the defense of the hostile action brought against Sover- eign by Country Bird Holdings concert parties as well as the offer,” the company said. Unlawful Meanwhile, a row has erupted between the two companies. Last week that Sovereign Food informed its shareholders that it was going to challenge in court a purported waiver issued by Country Bird a week before as unlawful.
Country Bird’s chief executive, Marthinus Stander, said Country Bird had not had seen the complaint or application filed by Sovereign and therefore did not know on what basis Sovereign claimed the waiver was unlawful.
Sovereign shares closed unchanged yesterday at R9.30.