Inner Mongolia Yili Industrial Group Co Ltd. has decided to not acquire Fauji Foods limited.
This was disclosed by the company in a notification sent to the Pakistan Stock Exchange. It noted that Inner Mongolia has withdrawn its intention to acquire up to 51% shares and control of Fauji Foods.
The acquirers and sellers are currently unable to reach an agreement on the proposed sale and transfer of shares, as the time period to make the offer has lapsed.
The Securities and Exchange Commission of Pakistan (SECP) had already given an extension of ninety-days to Mongolia Yili Industrial Group on February 6th, 2019 till April 29th, 2019 for making a public offer about its proposed acquisition of 51% majority shareholding in Fauji Foods Limited.
At the end of July last year, Inner Mongolia Yili Industrial Group Co had submitted an investment intention letter to acquire a 51 percent majority stake in Fauji Foods.
The Fauji Group had acquired the food company by purchasing 51% shares from the Noon Group in September 2015 for Rs. 700 million. The Noon Group still has an 11% stake in Fauji Foods.
Inner Mongolia Yili Industrial Group Co., Ltd. produces and sells dairy products in China and internationally. The company offers liquid milk, milk powder, yogurt, and ice cream, as well as milk tablets, soybean milk powder, and milk tea powder.
Fauji Foods Limited processes and sells toned milk, milk powder, fruit juices, allied dairy, and food products in Pakistan. The company also provides fruit products and markets its products under the Nurpur brand.
FFL’s shares at the bourse were trading at Rs. 21.17, down by Rs. 0.56 or -2.58% with a turnover of 3.00 million shares on Monday.
another news proving how hopeless is the economic situation in Pakistan.. kaptan has totally failed to nab crooks and now is on a sinking ship…
Trust the PSE, related bodies has taken the necessary legal, statutory adherence to the transaction which didn’t. This was an important transaction between PSE and the Chinese entity. As market dynamics, global scenario, currency fluctuation factors the unilateral decision has to address the penal clause applicable to the withdrawl of the transaction. Pure organic food from organic soil being sold for synthetics. Suggest the buyer has to meet their legal, contractual obligations.