ICI Pakistan reaches deal to sell 26.5pc stake of NutriCo Morinaga for $45mn

KARACHI: ICI Pakistan Limited has finalised a deal to sell its 26.5 percent stake in a NutriCo Morinaga (Private) Limited (NMPL) to the Japanese dairy giant Morinaga Milk Industry Co. Ltd, the company said on Friday

“ICI Pakistan Limited has entered into and executed a share purchase agreement to divest 26.5 percent of the issued and paid-up

share capital of its

subsidiary NutriCo Morinaga (Private) Limited (NMPL) to Morinaga Milk Industry Co. Ltd, a Japanese dairy giant, at an aggregate sale price of $45.08 million, which translates into approximately $2.07 per share,” ICI Pakistan said in a statement to Pakistan Stock Exchange.

“The company will continue to hold approximately 24.5 percent of the issued and paid up share capital of NMPL upon sale of the above referred shares.”

The ICI Pakistan said additionally, in terms of the SPA, “approximately 6.8 percent of the shares of NMPL are to be sold to Morinaga Milk by other shareholders of NMPL (who shall also continue to remain shareholders of NMPL upon such sale)”.

“Following closing of the transaction, Morinaga Milk will hold 51 percent of the issued and paid up share capital of NMPL,” it added.

ICI Pakistan has also entered into an agreement with the shareholders

of NMPL, which shall be effective from closing of

the share purchase transaction.

ICI Pakistan, in July, received a conditional offer from Morinaga Milk Industry to acquire approximately 33.3 percent shares of NutriCo Morinaga at an aggregate price of $56.6 million.

NMPL is a joint venture between ICI Pakistan, Morinaga Milk and Unibrands (Private) Limited to locally manufacture and distribute nutritional formula products, and was recently merged with NutriCo Pakistan (Private) Limited, which was involved in the import and distribution of select products of Morinaga Milk.

Moringa Milk Industry, in its filing to the Tokyo Stock Exchange in July, said that the company has been exporting infant and toddler milk to Pakistan since 1978 and sees the South Asian country as an attractive market, with the fifth-largest population in the world and continuing population growth forecast.

“The Morinaga Milk Industry brand has gained broad recognition in Pakistan over many years through the export business, giving the Company a high chance of achieving further rapid growth in the Pakistan market.

“By acquiring management control over NutriCo Morinaga ... the company considers that it will be able to capture growth opportunities, leading to the further development of the Morinaga Milk Industry brand infant and toddler milk business in Pakistan and contributing to the growth and health of the consumers of the Company products,” it said.