FRIDAY, 10.30AM
KWAZULU-NATAL-based food group Illovo Sugar has acquired 94,25% of Swaziland-based Lonrho Sugar for R13,90 a share in a R1,6-billion deal to create the biggest sugar producer in Africa.
The bulk (R1,1-billion) of the deal will be financed by a new rights issue of 129,8-million Illovo shares at R8,50 each. CG Smith Foods, which currently holds nearly 70% og Illovo, will buy 37,6-million of the new shares to ensure retention of a 51% shareholding in the enlarged Illovo. The acquisition is subject to approval by Illovo shareholders at a general meeting on June 17.