KARACHI ( MEDIA REPORT )
Engro Corporation has finally signed an agreement with a Netherlands-based dairy cooperative to sell up to 51 per cent shares in its subsidiary; hence Dutch firm buys Engro Foods at an estimated cost of $448 million.
This is to be considered as the single largest private sector foreign direct investment in Pakistan in the past years.
The Dutch acquirer Friesl and Campina would partner with the International Finance Corporation (IFC) and the Dutch development bank FMO in the share-purchase agreement (SPA).
Earlier on March 3, Friesl and Campina announced that it intended to acquire up to 51pc of voting shares of Engro Foods in line with local takeover laws.
Engro Corporation affirmed that it would remain a significant partner and shareholder under the new company structure.
Citibank, the financial adviser, said that Friesl and Campina planned to undertake acquisition directly and/or through a special-purpose vehicle (SPV). Subject to completion of public tender offer and relevant procedure under the law, IFC and FMO would acquire an equity interest in the SPV, resulting in Friesl and Campina holding around 80pc of SPV’s equity.
Friesl and Campina affirmed that it would make a tender offer to the remaining shareholders of Engro Foods from public shareholders. The actual number of shares purchased in the tender offer will be deducted from the number of shares acquired from Engro Corporation.
Courtesy Ibex