| Thu 14 May 2009, 17:11 | | CBH - Country Bird - Country Bird Purchases Stake In Sovereign Foods |
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CBH
CBH
CBH - Country Bird - Country Bird Purchases Stake In Sovereign Foods
Country Bird Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/008505/06)
Share Code: CBH & ISIN: ZAE000094835
("Country Bird" or "the Company")
COUNTRY BIRD PURCHASES STAKE IN SOVEREIGN FOODS
Country Bird Holdings Limited, the third largest integrated poultry
producer in the country, has accumulated approximately 13,4% of the shares
in Sovereign Food Investments Limited for R23,6 million through open market
transactions since December 2008.
This is a strategic acquisition funded from the proceeds of the sale of
Country Bird`s investment in Elite Breeding Farms, for which it received
R25 million from Astral during November 2008.
Country Bird believes Sovereign Foods to be a high quality company with an
excellent industry track record and good growth prospects, and believes
that a form of combination of the two companies would be able to compete
more effectively with the larger South African poultry producers.
Added to this are the attractions of a broader geographical footprint,
amalgamation of the diverse markets the two companies serve, and the fact
that both companies are using the highly successful Arbor Acres breeding
stock.
Country Birds Group Financial Director Robbie Taylor says, "This
announcement does not constitute a firm intention to make an offer for the
balance of the shares in Sovereign. The decision to proceed in that
respect is subject to an internal strategic review by Country Bird and
appropriate discussions with the Board of Directors of Sovereign Foods.
"This in no way constitutes a corporate action with hostile intent; it is
simply a strategic investment," concludes Taylor.
About Country Bird Holdings Limited
Country Bird Holdings Limited, which listed on the JSE in May 2007, is a
holding company incorporating integrated poultry, stock feed and beef
businesses in South Africa, operating as Supreme Poultry, Nutri Feeds and
Long Iron Meats respectively, as well as poultry breeding and broiler
operations in the Southern African region, operating as Ross Africa. CBH
is currently active in South Africa, Namibia, Botswana and Zambia.
ISSUED FOR : COUNTRY BIRD HOLDINGS LIMITED (CBH): 011 778 0600
CONTACT : Robbie Taylor, : 082 809 9506
FAX NO : 086 660 0917
E-MAIL : robbie@countrybird.co.za
WEBSITE : www.cbhltd.co.za
ISSUED BY : Tish Stewart Corporate and Investor
Communications
CONTACT : Tish Stewart: 082 443 6399 / 011 442 5536
FAX NO : 011 447 9317
E-MAIL : tishstewart@mweb.co.za
DATE : 14 May 2009
14 May 2009
Sponsor: Investec Bank Limited
Date: 14/05/2009 17:11:04 Produced by the JSE SENS Department.
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