A South African dairy company Clover Industries Ltd., has reportedly received a takeover bid from a group of investors led by Israel’s Central Bottling Co. Reportedly, the investors group are likely to snap up the company in a deal worth 4.8 billion-rand ($359 million).

According to sources, share of Clover Industries soared over 20% after the announcement of the 4.8-billion-rand buyout offer from group of investors. They further claim that the proposed deal from Milco SA offers ZAR 25 per share to Clover’s shareholders, which marks a significant 25% premium to the dairy company’s closing share price on February 1.

Clover first revealed in October last year that it was in talks with some unnamed firm for the takeover interest as it was just recovering from depressed milk prices and drought. Clover, for the record, processes various products such as cheese, yogurt, beverages and olive oil.

Following the transaction, Milco will be 60%-owned by CBC, Brimstone will hold 15%, Ploughshare 11%, IncuBev 8% and Clover management 6%. They will reinvest a “substantial portion” of the proceeds from their shares and share options into Milco.

If sources are to be believed, Clover industries spun off its milk business in 2018 to move away from low margin dairy products and develop high-margin & value added branded food & beverage commodities.

As reported by Just Food, the investors group comprises Ploughshare Investments Ltd., Brimstone Investment Corporation, IncuBev and a subsidiary of the Central Bottling Company Group (CBC) International Beer Breweries Ltd., and Clover’s majority shareholders holding more than 49% of the dairy firm’s shares.

On materialization of the transaction, Clover management will hold 6%, IncuBev 8%, Ploughshare 11%, Brimstone15%, and Milco will hold majority 60% stakes – owned by CBC.

It has been reported that the deal is still subject to stakeholders and regulatory approvals.