Brimstone reviewing buyout offer for S.Africa's Clover
(Recasts, adds more detail, responses, updates shares)
JOHANNESBURG, Feb 7 (Reuters) - South Africa's Brimstone
Investment Corporation said it is reviewing its role in a
proposed 4.8 billion rand ($353.38 million) buyout of dairy firm
Clover Industries, after opposition from an anti-Israel
boycott and divestment group.
Shares in Clover, which processes products including yoghurt
and olive oil, fell nearly 10 percent on Thursday after
Brimstone, which has a 15 percent stake in a consortium offering
to buy the firm, said it was reconsidering due to "widespread
"Having regard to our company's value-driven identity, we
take note of the widespread outrage in respect of Brimstone's
participation in the proposed purchase of... Clover Industries
Limited," Brimstone said in a statement.
"Brimstone has decided to review its role in the proposed
On Wednesday, Boycott, Divestment, Sanctions against Israel
in South Africa (BDS SA), an organisation that promotes
solidarity with Palestinians, said it opposed the deal, which is
being led by an Israeli beverage firm, the Central Bottling
BDS SA had no immediate comment on Thursday. Spokespeople
for CBC and Clover were not immediately available for comment.
Boycott and divestment campaigns have a history of success
in South Africa, after an international campaign against the
Brimstone was one of the minority partners in the deal,
which marked the first firm offer for Clover after months of
takeover talks with numerous firms.
Its decision to review its role leaves the offer, which had
prompted a 20 percent jump in Clover shares, casts some doubt on
the deal with Clover shares falling 9.78 percent before paring
the losses to trade down 6.43 percent at 1102 GMT on Thursday.
($1 = 13.5833 rand)
(Reporting by Emma Rumney; Editing by Jan Harvey and Emelia
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