South African food company Premier Group is to sell its 62.8% share in dairy firm Bonnita to Italy-based Parmalat for R2.82 (US$0.52) per share, or $74.59 million in total.
Hein Brand, Bonnita’s director of finance, told DII that, in line with the rules of the securities regulation panel and the Johannesburg Stock Exchange, Parmalat will make a comparable offer to minority shareholders.
A merger with Parmalat, which already owns South African producer Towerkop, would increase Bonnita’s share of the local market from 20% to 26%.