Johannesburg - Shares of South Africa's RCL Foods fell 1.6 percent on Friday, a day after the company said it would issue $394 million in stock to acquire two sugar businesses from its top shareholder Remgro Ltd.
RCL, formerly called Rainbow Chicken Limited, said in a statement on Thursday it would acquire Remgro's TSB Sugar and TSB Sugar International units for 4 billion rand ($394 million) in stock to diversify its business.
RCL, which is nearly 70 percent owned by Remgro, the investment firm run by South African billionaire Johann Rupert, will issue 230.9 million shares at 17.32 rand each for the businesses.
Shares of RCL fell 1.6 percent to 17.99 rand on Friday, adding to a 0.8 percent drop a day earlier.
South Africa-based TSB Sugar has the capacity to produce 700,000 tonnes of sugar a year, while the international unit holds a stake in a Swazi sugar company and owns 100 percent of UK firm Booker Tate Holdings, which consults to the sugar industry. - Reuters