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Pioneer takes dive as junk status derails transaction

Announces withdrawal of cautionary announcement.

Pioneer Foods took a hit during intraday trade after the company axed a potential material transaction.

Shares in the company traded 4.38% lower at R169.00 at the close.

Pioneer announced, via Sens, that South Africa’s sovereign credit rating downgrade had derailed plans to explore a material transaction, for which it had been approached.

“Shareholders are hereby advised that, due to the recent sovereign debt rating downgrades in South Africa and the potential for additional downgrades, the parties have decided to discontinue negotiations at this time,” the company said.

It also withdrew the cautionary announcement dated March 7, in which it advised shareholders that the deal may have had an effect on its share price had it gone ahead.

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Are there potential jobs that would have been created with the deal? Did it involve investment in SA?

Or Pioneer may have been expanding elsewhere – pity we don’t know.

I wonder who the blame will be laid on for this event? The first of many to occur.

Thanks Mr. Zupta.

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