DURBAN – Clover Industries’ share price surged by more than 16 percent on Monday after the consumer goods and products company announced that it had received a buyout offer from a newly formed consortium, Milco, valuing Clover at R4.8 billion.
Clover said in a statement that the fully funded cash offer represented a 77 percent premium to its closing price of R14.10 on October 18, 2018, the day prior to Clover issuing its original cautionary announcement.
Clover jumped to R23.80 a share, its highest in more than a year, up from Friday’s closing price of R20. Its shares closed at R23.01 yesterday.
Milco offered to buy its entire issued share capital of Clover for R25. Milco plans to delist Clover from the JSE and the Namibian Stock Exchange.
Clover said the consortium had secured the funding for the acquisition through its own cash resources, as well as bank facilities.