Dairy producer Clover on Monday moved to reassure shareholders that its restructure and the transfer of its low-margin business will not negatively impact the JSE-listed firm.
Clover last month announced the restructuring of its business to develop higher-margin, value-added products in dairy and other related food categories and eliminate Clover’s exposure to the cyclical nature of its low-margin business.
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The proposed restructure will see Clover unbundle its low-margin assets, which include the marketing and selling of nonvalue-added fresh milk, ultrapasteurised milk and ultra-high-temperature milk, into the newly established special purpose vehicle Dairy Farmers South Africa (DFSA), which will now be responsib…
Read the full article at: http://www.engineeringnews.co.za/article/restructure-low-margin-business-exit-a-positive-move-clover-assures-shareholders-2017-01-30