JOHANNESBURG - South Africa’s Clover Industries said on Friday it has entered into talks with an unnamed firm that intends to acquire the entire issued share capital of the dairy company, sending its shares up 13 percent.
Clover, which processes products including yoghurt, beverages, cheese and olive oil, has focused on developing higher margin, value-added branded food and beverages as part of its strategy to move away from lower-margin commoditised dairy products.
Clover, which has a market capitalization of 2.73 billion rand ($190 million), did not provide further details.
Its shares jumped 13.3 percent to 16.01 rand by 0846 GMT.
“From an earnings point if view, they are going in the right direction. The last set of results was very positive. Whoever is buying it has definitely come in at the right time” said Greg Davies, equities trader at Cratos Capital.
In September, the firm reported normalised annual profit tripling, boosted by its exit from the milk business and a recovery from drought the previous year.