Rainbow Chicken Raises Stake in Foodcorp02 July 2013
SOUTH AFRICA - Rainbow Chicken has entered an agreement to acquire a further 23.9 per cent stake in food producer Foodcorp, a transaction that would increase the broiler producer’s effective interest in Foodcorp to 88.1 per cent.
According to IOL, in April, Rainbow acquired a 64.2 per cent stake in Foodcorp through its subsidiary Capitau Investment Management.
Rainbow will pay Foodcorp management and Foodcorp Management Holdings a total cash consideration of R393 million for the 23.9 per cent stake.
It said increasing its stake would enable it to broaden its range and its ability to compete effectively as a food player. Rainbow shares gained 2.26 per cent to close at R15.85.
TheMeatSite News Desk