JSE-listed Sovereign Food, through its wholly owned subsidiary Crown Chickens, entered into an agreement on Monday to buy a broiler farm from Simile Farmers for R36.25-million, including value-added tax, to secure its supply chain.
Sovereign, a fully integrated poultry business, advised its shareholders of the acquisition on Wednesday.
The company explained that as the purchase had been categorised as a Category 2 transaction, in accordance with the JSE’s listings requirements, shareholder approval was not required.
All conditions precedent had been fulfilled.