CLOVER INDUSTRIES LIMITED - Clover to manufacture and pack Ayrshire milk, organic milk and other niche products for Woolworths Holdings Limited

Clover to manufacture and pack Ayrshire milk, organic milk and other niche products for Woolworths Holdings Limited

Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
JSE Ordinary Share code: CLR
NSX Ordinary Share code: CLN
ISIN No: ZAE000152377
("Clover", "the Group" or "the Company")

CLOVER TO MANUFACTURE AND PACK AYRSHIRE MILK, ORGANIC MILK AND OTHER NICHE PRODUCTS FOR
WOOLWORTHS HOLDINGS LIMITED FOLLOWING CONDITIONAL COMPETITION COMMISSION APPROVAL

-    Approval paves the way for acquisition of fresh dairy business and assets of Nkunzi Milkyway Proprietary
     Limited
-    Existing supply agreements with producers to be taken over on the same terms and conditions or
     renegotiated individually
-    Supply agreement to manufacture and pack for Woolworths to drive further expansion of Ayrshire, Organic
     and other niche product markets

Clover, a leading branded consumer goods and beverages group operating in South Africa and other selected African
countries, today announced Competition Commission approval of its acquisition of the business and assets of Nkunzi
Milkyway Proprietary Limited ("Nkunzi") ("the Acquisition").

The Acquisition will see Clover entering the Ayrshire and Organic milk markets, where it will manufacture and pack
fresh milk and cream in addition to other dairy products for Woolworths Holdings Limited ("Woolworths") at the
acquired Nkunzi facility as well as its Clayville plant in Midrand, Gauteng.

Commenting on the approval, Johann Vorster, Clover Chief Executive, said:

"The Commission initially expressed concern over the impact of the Acquisition on small farmers and on
employment when we first announced the Acquisition. I am very pleased that through continued engagement we
could address these issues satisfactorily and establish a win-win environment.

Ayrshire’s name in dairy has grown tremendously over the past two decades due to substantial and continued
investment by Woolworths. Our view is that Ayrshire’s strong brand is closely aligned with that of Clover’s as it is
synonymous with quality dairy products.

In addition to promoting the Ayrshire brand through continued high-quality dairy products, Clover will invest
further in capital equipment and provide employees with a wider career scope within the Group."

In terms of the Competition Commission’s conditional approval, Clover undertakes not to retrench any employees as
a result of the Acquisition. In addition, Clover will invest in production capacity and facility upgrades, which will in
part be driven by Woolworths’ 2020 growth strategy.

Clover will take over existing Nkunzi supply agreements with producers on the same terms and conditions, or
renegotiate supply agreements on an individual basis with producers.

The Acquisition was approved by the Competition Commission on 23 April 2015.


ENQUIRIES

Clover Industries                                                                        +27 (0) 11 471 1702
Jacques van Heerden – Executive: Legal, Secretarial and Strategic Projects               +27 (0) 79 524 8736
Instinctif Partners                                                                      +27 (0) 11 447 3030
Morné Reinders                                                                           +27 (0) 82 480 4541
Louise Fortuin                                                                           +27 (0) 71 605 4294
www.clover.co.za


Johannesburg
29 April 2015

JSE Limited Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

NSX Sponsor
IJG Securities

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