CLOVER INDUSTRIES LIMITED - Clover to exit Danone SA agreements.

Clover to exit Danone SA agreements.

CLOVER INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR
ISIN: ZAE000152377
(“Company” or “the Group” or “Clover”)

CLOVER TO EXIT DANONE SA AGREEMENTS
RELEASE OF LEGACY RESTRICTIONS PAVES WAY FOR CLOVER TO PURSUE
OPPORTUNITIES IN HIGH GROWTH PRODUCT CATEGORIES

Shareholders are advised that Clover has decided not to renew
a number of the supply and service agreements currently in
place between Clover and Danone Southern Africa (Pty) Ltd
(“Danone S.A.”) under the current terms and conditions after
the majority of the contracts ends in December 2014.

Clover currently provides a range of services for Danone S.A.
relating to yoghurt and other fermented products, including
raw milk and other raw material procurement, manufacturing and
packaging of custard, sales and merchandising services as well
as distribution and certain IT services.

The Company is of the view that the decision not to extend the
contracts in its current form is unlikely to have a materially
negative impact on Clover’s earnings potential in the medium
to long-term as Clover will be freed from certain legacy
restrictions which came about due to historical reasons which
will enable Clover to pursue opportunities, including new
products development, as well as further principal
distribution prospects.

“The relatively long lead-time to the end of our contractual
agreement with Danone S.A. will enable a smooth transition for
both parties and allow Clover to make several strategic
investment decisions.

“Going forward, Clover will be able to pursue certain
attractive high-growth product categories, backed by our brand
power and ability to achieve a strong market position,”
commented Johann Vorster, Clover’s Chief Executive.

Roodepoort
18 September 2013


Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)

ENQUIRIES

Clover Industries Limited       +27 (0) 11 471 1702
Johann Vorster – Chief          +27 (0) 82 462 0083
Executive
Jacques van Heerden – Company   +27 (0) 79 524 8736
Secretary
College Hill                    +27 (0) 11 447 3030

Morné Reinders                  +27 (0) 82 815 1844
Frédéric Cornet                 +27 (0) 83 307 8286

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