Pakistan Agriculture News

Chinese industrial group withdraws intention to acquire Fauji Foods

KARACHI: China’s Inner Mongolia Yili Industrial Group, a state-owned company specialising in dairy products, has withdrawn its intention to acquire majority stake in Fauji Foods Limited, according to a notice sent by the company to the Pakistan Stock Exchange (PSX).

“We write to disclose that through its letter dated April 29, 2019, Citibank, as the manager to the offer for Inner Mongolia Yili Industrial Group (‘Acquirer’), has informed us that the acquirer is withdrawing its intention to acquire up to 51% shares and/or control of Fauji Foods,” read the notification.

The exact reason behind this development could not be ascertained, however, management of Fauji Foods stated that both parties failed to reach an agreement before the deadline. “The acquirer and the sellers are currently unable to reach an agreement on the proposed sale and transfer of shares and the time period to make the offer has lapsed,” added the notification.

On July 31, 2018, Fauji Foods informed PSX that it had received an offer from Inner Mongolia Yili Group, the largest dairy producer of Asia and the eighth largest across the world, for 51% acquisition.

“The potential acquirer has expressed its intention to enter into negotiations or discussions with Fauji Fertiliser Bin Qasim Limited (FFBL) for the proposed acquisition of up to 51% of the voting shares and/or control in Fauji Foods Limited, from FFBL and other shareholders,” according to the previous notice.