NOT only has Pioneer Foods expressed interest in making an offer for KWV, but two other companies also indicated that they are interested.
Clover, who listed on the Johannesburg Stock Exchange yesterday, is interested in bidding for KWV, and a British company, Halewood International, has also indicated interest in making an offer, while a third possible offer is in the pipeline for the Vinpro arm of KWV.
A spokesperson of KWV said KWV’s board has not received firm offers from any other party than Pioneer, and cannot comment on such approaches.
Former chairman Danie de Wet last week made an offer to purchase Vinpro at R12,50 per share.
Halewood International is the biggest independent producer and distributor of alcoholic drinks in the UK and has been represented in South Africa since 1999.
The company has been in negotiations with KWV for some time and is expected to offer more than the R12 per share offered by Pioneer Foods.
KWV’s board has not committed itself to any price in the proposed Pioneer Foods transaction. The offer, including the price, will be evaluated by KPMG which will make a recommendation to the board, the spokesperson of KWV said.
This recommendation will be included in a circular to all shareholders early next year, as well as an announcement on the anticipated timelines.
Halewood, on the other hand, may only be interested in purchasing certain KWV brands which fit in with their own business.
Opponents of the Pioneer Foods deal have expressed fears that the food giant would be more likely to sell assets like the KWV head office building and Laborie wine estate, instead of growing the business, and would sell off the brands to Halewood.
Pioneer Food Group and KWV Holdings said on Monday that Pioneer has submitted a firm intention to make an offer to acquire 100% of the issued ordinary shares in KWV for R828m.
Pioneer said its shareholders would benefit from the addition of a sizeable business which generates revenue in excess of R700m per annum.
