Quantum Foods Holdings, the South African poultry processor, said today (28 September) it was in talks that could have an impact on the company's share price.
"Shareholders are advised that the company has entered into negotiations, which if successfully concluded may have a material effect on the price of the company's securities," Quantum said in a statement to the Johannesburg Stock Exchange. "Accordingly, shareholders are advised to exercise caution when dealing in the company's securities until a full announcement is made."
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Officials at Quantum had not returned requests for further comment at the time of writing.
Two weeks ago, Quantum issued a trading update to say there is "a reasonable degree of certainty" its headline earnings per share for the year to the end of September 2015 are expected to be a minimum of 49.4 cents per share, compared to 11.2 cents a year earlier.
Quantum said its "improved results" would be due to lower maize and soya meal costs helping broiler and egg production costs. It also cited increases in egg selling prices and volumes of layer livestock sold.
The company, spun out of South African business Pioneer Foods Group last year, is set to announce its full annual results on 26 November.
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By GlobalDataFor the six months to the end of March, Quantum booked headlines earnings per share of 26.3 cents, versus 9.3 cents a year earlier. Operating profit stood at ZAR82m (US$5.8m), compared to a loss of ZAR24m in the corresponding period a year earlier.
Revenue fell 3.7% to ZAR1.68bn due to the decrease in sales from the broiler business following changes to the business model at the Western Cape.
