SOUTH AFRICA – Country Bird Holdings (CBH) has increased its holdings in Quantum Foods, securing additional shares after successfully acquiring Astral Foods’ 9.77% stake in the JSE-listed stockfeeds and poultry company.
The move triggered a surge in Quantum Foods’ JSE-listed shares by an impressive 72.93%, following Astral Foods’ divestment to CBH, creating a notable shift in the dynamics of the poultry industry.
According to South Africa, analysts suggest the acquisition has sparked a battle for control over Quantum Foods, emphasizing that only about 5% to 6% of the company’s stock remains available in the free float.
Quantum Foods confirmed that it received a notification from CBH under the Companies Act, indicating additional acquisitions of shares by CBH, building on a previous transaction.
“Since Astral Foods’ stake was acquired by CBH, Quantum Foods has been informed by a shareholder about an unsolicited offer from CBH to acquire their shares,” the analysts noted.
“This proposed transaction, priced above the prevailing market rate but below R7.25 per share, adds another layer of complexity to the unfolding scenario.”
Additionally, another shareholder expressed an intention to offer their shares to the market at R8.10 per share and Quantum Foods is actively engaged in discussions with various stakeholders, exploring potential share purchases by other parties.
In response to the developments, Quantum Foods has been notified that certain shareholders, including Aristotle Africa, controlling about 34% of the company, have agreed to sell their shares.
Meanwhile, Quantum Foods’ share price has witnessed a remarkable 104.4% increase between March 1 and March 7, with Friday’s closing price at R9.50.
Country Bird Holdings’ increased stake follows its successful purchase of a 31% stake in Quantum Foods in 2020.
Despite previous attempts by CBH to acquire Quantum Foods, the company’s directors countered by purchasing shares, and Silverlands II, an investment fund based in Luxembourg and managed by London-based SilverStreet Capital, acquired 32% of the group.
As of the latest information available, Country Bird Holdings currently owns 15.8% of Quantum Foods, ranking behind Braemar Trading with 30.8% and Aristotle Africa S.à.r.l., a subsidiary of Silverlands, leading with 34.2%.
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