Capitalworks, through a special purpose vehicle called Bidco, made two separate offers for the Sovereign shares, a scheme of arrangement and a general offer. The general offer requires 50% acceptances, so the 54.37% level means it will go ahead if the scheme of arrangement fails, once all other conditions are satisfied.

For the scheme of arrangement to proceed, at least 75% of Sovereign’s shareholders have to vote in favour of it at a general meeting to be held on October 9, and all regulatory approvals have to be secured by November 15. If the scheme goes ahead, Sovereign shares will be delisted on that date.

Capitalworks has offered R12 in cash or a linked Bidco ordinary and preference share for each Sovereign share. Its bid was one third higher than another from Country Bird Holdings, which offered R9 a share. Country Bird has since said it would not pursue its offer, after an outbreak of avian flu at Sovereign’s Uitenhage operations.

Sovereign shares were at R11.25 on the JSE in late trade on Tuesday.

Source: Business Day Live