Matco Foods Limited (PSX: MFL) has received a non-binding offer from IGI Investments (Private) Limited to acquire its entire 100 percent stake in Matco Corn Products (Private) Limited, according to a disclosure submitted to the Pakistan Stock Exchange on October 15.
The proposed transaction involves the sale of Matco Foods’ wholly owned subsidiary to IGI Investments, which is itself a wholly owned subsidiary of IGI Holdings Limited.
Matco Foods’ board of directors considered the offer on October 15 and authorized the company’s management to enter into discussions and negotiations with the potential acquirer.
The management has been directed to submit its final recommendations, including the proposed terms and conditions, to the board for formal review and approval.
Matco Foods has appointed Arif Habib Limited as its sell-side adviser for the proposed transaction.
The company said further disclosures would be made in accordance with applicable laws and regulations as the transaction progresses and material developments occur.
Matco Foods Limited was incorporated in Karachi on April 14, 1990, and listed on the Pakistan Stock Exchange in February 2018.
The company processes and exports basmati and other rice varieties, rice glucose, rice protein, rice syrup and maltodextrin, Himalayan pink salt, spices and dessert mixes under its flagship Falak brand, alongside private-label food products sold in more than 60 countries.
Its operations also include corn starch and animal nutrition products.
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