Morinaga Offers to Buy 33% Stake of ICI Pakistan’s Subsidiary

ICI Pakistan Limited has received a conditional offer from Morinaga Milk Industry, Japan for the acquisition of an aggregate of approximately 33.3 percent of the issued and paid-up share capital of its subsidiary, NutriCo Morinaga (Pvt.) Ltd., against the value of $56 million, which translates to $2.07 per share.

According to a notification to the Pakistan Stock Exchange (PSX), ICI Pakistan’s Board of Directors has granted in-principle approval to ICI Pakistan to move forward with the proposed sale/divestment of 26.5 percent of its shareholding in NutriCo Morning Ltd. (partial divestment to Morinaga Milk, subject to, inter alia, the valuation of NutriCo Morning Ltd. and the finalization of definitive agreements, to be presented to the board for formal and final approval.

In this respect, ICI Pakistan has also been authorized to enter into a memorandum of understanding (MoU) for the proposed transaction.

NutriCo Morning Private Limited was a joint venture between ICI Pakistan, Morinaga Milk, and Unibrands Pvt. Ltd. to locally manufacture and distribute nutritional formal products. It was recently merged with NutriCo Pakistan Pvt. Ltd. — an importer and distributor of selected products of Morinaga Milk.

The offer from Morinaga Milk is a testament to its interest in the Pakistani market and the potential of NutriCo Morning Ltd. to grow and cater to the growing nutritional needs of the children of Pakistan.

As the owners of the Morinaga brand, knowledge of how to manufacture products along with its superior research and development facilities, Morinaga Milk is well-equipped to accelerate the growth of NutriCo Morning Ltd. with the support of ICIC Pakistan as a continuing joint venture partner. The consortium of this transaction will position NutriCo Morning Ltd. favorably to fully leverage the potential of the Pakistan market and deliver enduring value to all the stakeholders.

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