Brimstone said it decided to ditch Milco SA, a consortium that is led by Israel’s Central Bottling Company (CBC), following a protest by pro-Palestinian activist groups in South Africa.
On Friday, Brimstone informed its shareholders that it had entered into an agreement with Milco SA and International Beer Breweries Limited (IBBL) to facilitate its exit from its participation in the transaction.
“In terms of the back-stop agreement, IBBL or its affiliates will facilitate Brimstone’s exit by agreeing to acquire Brimstone’s interest in Milco SA on December 31, 2019, if by that date Brimstone has not been able to secure a suitable replacement broad-based black economic empowerment investor,” Brimstone said. CBC is a privately owned international food and beverage group, with subsidiary companies that serve more than 160million consumers across the globe.
The transaction would have seen Milco SA taking a 60percent ownership of Clover upon finalisation.