THE listed company Pioneer Foods has approached KWV Holdings with the view to possibly acquire KWV Holdings or conclude a similar transaction.
Shareholders of Pioneer Foods and KWV Holdings received cautionary announcements in this respect. It was pointed out that there can be no certainty that these discussions will lead to a transaction.
Shareholders were advised to continue to exercise caution when dealing in their shares until a further announcement is made.
“Pioneer Foods and KWV Holdings will revert to shareholders on further progress in this respect once more certainty exists.”
Experts have raised doubts whether Pioneer would be able to purchase KWV outright in a deal valued at between R700 and R800 million, in the light of the fine of nearly R1 billion to be paid to the competitions tribunal following uncompetitive activities in the milling industry. However, there could be considerable synergy between the beverage activities of Ceres Fruit Juices and KWV, should the deal go through.
Antonie Jacobs, CEO of Zeder and a director of Pioneer Foods, was re-elected to the board of KWV last week during their annual general meeting in Paarl.
