Clover Industries, the South African dairy group, is in talks over a possible takeover.
The company revealed today (19 October) it is in negotiations with an unnamed company.
In a statement on its website today (19 October) Clover said: “Shareholders are advised that the company has entered into negotiations with a third party regarding the potential acquisition by the relevant third party of the entire issued share capital of the company.
“Shareholders are advised to exercise caution when dealing in the company’s securities until a full or further announcement in this regard is made.”
Clover, which has a branded product range covering categories including milk, yogurt, cheese and butter, has a market capitalisation of ZAR2.73bn (US$190m) and is listed on the Johannesburg Stock Exchange. It is South Africa’s largest dairy producer.
In September, Clover reported a 44% slide in its full-year operating profit, citing “once-off” impacts from a prolonged drought, a wetter and cooler summer and volatility in the rand, factors it said were beyond its control.
It had earlier issued a number of profit warnings.