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Shan may sell majority stake, contacted Unilever: Bloomberg
Posted on Wednesday, 06 November 2019 10:40
Shan Foods has hired an advisor to sound out interest in a potential sale of a majority stake in the Pakistani packaged spice mix producer, sources close to the situation told Bloomberg.
According to the people, who declined to be named as the matter is private, if a deal went ahead it may value the whole of the company at about USD 250.00 million.
Shan has approached the likes of Unilever to gauge interest in exposure to an economy undergoing revival measures that include discouraging imports to boost domestic manufacturing sales.
However, the sources cautioned the talks are ongoing and there is no guarantee they would pave the way for a majority stake sale, or even a deal for a minority equity interest.
Less than two weeks ago, Shan issued a statement to deny rumours circulating social media channels that a multinational corporation was in the process of buying 51.0 per cent of the local brand.
However, it did not deny being on the market: “As a proud Pakistani company which has seen exponential growth globally, Shan Foods continues to explore organic and inorganic opportunities for further enhancement of its business.
“If and when such a situation develops, we will be the first to communicate the news to our respective stakeholders.”
At the time, chief executive Sikandar Tiwana told Pakistan Today’s Profit magazine: “In the course of business, you enter these kinds of conversations with many parties.
“There are always rumours, some more substantial and others not, but we will let the public knows as soon as anything of the sort is happening.”
A mergers and acquisitions professional told the e-magazine: “This is how things go in Pakistan. Companies deny until the very end and then conveniently announce it when everything is final.”
© Zephus Ltd