Mergers & Acquisitions

Sovereign defends hostile takeover attempt by competitor, Country Bird

Cliffe Dekker Hofmeyr acted for Sovereign Food Investments Limited (Sovereign Foods), one of the largest poultry producers in South Africa.

Following the successful defence of an attempted hostile take-over of Sovereign Foods by Country Bird Holdings (CBH), our corporate/M&A team advised this client in respect of Capitalworks' friendly offer to acquire all (or a portion) of the shares in Sovereign Foods. This took the form of two separate, but concurrent offers, by way of a scheme of arrangement and, in the event that the scheme of arrangement failed, a general offer coupled with a delisting. The offer was a cash offer together with a limited re-investment option, capped at 15 per cent, thereby providing shareholders with optionality to continue holding an indirect investment in Sovereign Foods.