Synapp considers buying remaining 20% of Country Bird

COUNTRY Bird Holdings said at the close of trade yesterday it had received an expression of interest for all its shares not owned by its majority shareholder, Synapp International, while also warning it would report a loss in the year to June.

Investment company Synapp, led by a Country Bird director, holds about 80% of the JSE-listed poultry producer’s shares, with most of the remaining shares held by minority public shareholders.

Country Bird issued a cautionary announcement to shareholders, saying the expression of interest would be considered by its board. It did not say whether a successful conclusion of the deal would result in the company’s public shares being delisted from the JSE.

Along with some other poultry stocks, Country Bird’s share price has outperformed the JSE this year. It has risen 20.6%, despite the stock being tightly held by Synapp.

Meanwhile, the company also said it would swing into a loss in its year ended June.

Its loss and headline loss per share for the year would be between 66c and 76c compared with earnings per share of 25.63c and headline earnings per share of 25.51c in the previous year.

The company made an operating profit of R132.6m in its previous

Synapp, led by a director of Country Bird, holds about 80% of the poultry producer’s shares

financial year ended June last year.

Country Bird expects to publish its results for its 2014 financial year on September 1.

The firm earlier this year reported an after-tax loss of R38.8m for the half year ended December, as cheap imports and rising input costs resulted in substantial losses locally.

Post Country Bird’s financial year ended June, the sector has been granted relief from cheap imports in the form of preliminary antidumping duties. The preliminary antidumping duties, ranging from 22% to 73%, were introduced against imports of frozen bone-in chicken from Germany, the Netherlands and the UK. Import duties against producers and importers from Brazil were raised last year.

Another poultry stock to have reported full year earnings, Sovereign Food Investments, reported lower headline earnings for its year ended February, at R46.2m.

Its headline earnings per share declined 19.2% to 60.2c in the year.