(Bloomberg) – Clover Industries Ltd. management plans to buy into the business alongside a group of investors that offered R4.8bn ($338m) to acquire South Africa's largest publicly traded dairy-products manufacturer.
If the transaction goes ahead, the Johannesburg-based company will expand into other African markets, Chief Executive Officer Johann Vorster said in a phone interview on Tuesday. A consortium led by Tel Aviv-based Central Bottling Co. offered R25 a share for Johannesburg-based Clover in February, and shareholders will vote on the transaction on March 29.
"The buyers are mainly family-owned businesses that have a longer-term view than some of our current investors," Vorster said. "Management has a long-term view and is committing to another 5 years with Clover."
With consumer spending declining in its main market of South Africa, Clover plans to invest in technology, develop new products and increase its market share. The company continues to invest in expanding capacity and recently added a new yogurt line, with plans to introduce products including flavored margarines, said Vorster.
Outside its home market, the company plans initially to build a more substantial presence in eastern African countries including Kenya, Tanzania and Malawi, he said.
Activist objections
The offer for Clover sparked controversy last month when a pro-Palestinian activist group objected to the deal. South Africa's ruling African National Congress had close ties to the Palestine Liberation Organisation during the apartheid era and Israeli interests are frequently the target of protests.