Sovereign Food Investments, the South African poultry business, today (12 October) confirmed a series of measures, including a Black Economic Empowerment (BEE) transaction, a week after announcing mystery talks that could have affected its share price.
The company also announced it is looking to acquire back 10% of its issued ordinary shares and introduce a new executive remuneration policy that alters its short- and long-term incentive schemes.
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After the share acquisition and BEE transaction, a BEE Trust will hold approximately 28.2% of Sovereign’s total shares, excluding treasury shares held by Crown Chickens and the ESOP Trust.
In a statement to the Johannesburg stock exchange last week, Sovereign said it was at an “advanced stage” in “implementing a number of potential strategic initiatives, including the conclusion of a BEE transaction”. The announcement followed a shorter statement days before that prompted speculation Sovereign could be in takeover talks with a competitor.
It has also released significant changes to the make up of its board including the retirement of its chairman, Charles Davies, who is being replaced by current director, Thomas Pritchard. Davies will stay on the board in a non-executive role until 29 February 2016, with Pritchard taking over chairman duties from 10 October allowing for hopefully a smooth hand over process.
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Other key changes will see two members brought in from the new BEE Trust to sit on the board to replace Litha Mveliso Nyhonhya and Professor Mziwakhe Phinda Madi who have both voluntarily resigned following the completion of the BEE transaction.
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By GlobalDataTo ensure the board has a majority of non-executive directors, Gerald Walter and Blaine van Rensburg, have also volunteered to step down.
Shareholders will be given the opportunity to take part in the 10% repurchase programme which will see a total of 7,736,168 shares being acquired and approximately ZAR62m of capital being returned to shareholders.
