| Tue 9 Dec 2008, 9:18 | | CBH - Country Bird - Sale Of Country Bird`s Shareholding In Elite Breeding |
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CBH
CBH
CBH - Country Bird - Sale Of Country Bird`s Shareholding In Elite Breeding
Farms
Country Bird Holdings Limited
(Incorporated in the Republic of South Africa)
(Reg. no 2005/008505/06)
Share Code: CBH ISIN: ZAE000094835
(`Country Bird`)
SALE OF COUNTRY BIRD`S SHAREHOLDING IN ELITE BREEDING FARMS
Country Bird (Pty) Ltd, a wholly owned subsidiary of Country Bird Holdings
Limited (CBH), has accepted a settlement offer by Astral Foods for the
purchase of its 18% shareholding in Elite Breeding Farms (Elite), a joint
venture arrangement in which Astral held the controlling stake. The sale
releases Country Bird from what it contended to be an anti-competitive
agreement that required the company to purchase breeding stock from a
competitor. The total settlement amount is R25m.
Country Bird and Astral have been involved in litigation over the Elite
arrangement for several years. A complaint was also lodged with the
Competition Commission, which was subsequently referred by the Commission to
the Competition Tribunal.
In terms of the settlement, both parties have withdrawn any claims each might
have had against the other, with each party bearing its own costs. Country
Bird has been vindicated in its decision to stop purchasing the Ross bird, as
was required by the Elite arrangement, and to replace its entire breeding
stock with the Arbor Acres bird. This replacement programme has recently been
successfully completed, having commenced some 18 months ago.
Country Bird has withdrawn its application to intervene in the Competition
Commission`s referral of complaint against Astral. However, it is likely that
the Commission will continue with a complaint in relation to Astral`s past
conduct.
CBH Group Financial Director Robbie Taylor says the company is delighted at
this long overdue outcome. "Management can now focus on producing quality
affordable chicken, choosing the genetic stock most suited to Country Bird`s
requirements and avoiding unnecessary legal fees."
Monday, 08 December 2008
For further information, please contact:
Robbie Taylor, Group Financial Director, Country Bird Holdings Limited
Tel: 011 778 0600
Cell: 082 809 9506
Email: robbie@countrybird.co.za
9 December 2008
Sponsor: Investec Bank Limited
Date: 09/12/2008 09:18:04 Produced by the JSE SENS Department.
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