KARACHI:
Wilmar International Limited (WIL), Asia’s leading agribusiness group based in Singapore, has proposed to acquire an additional 23.20% stake in Unity Foods through its subsidiaries and associates. The aim is to take over the management control of the company with the introduction of foreign investments.
The group and its partners have proposed to acquire an additional 277.07 million shares at Rs 24.89 per share, for a total new investment of Rs 6.89 billion.
In a notification to the Pakistan Stock Exchange (PSX) on Wednesday, the offer manager, Arif Habib Limited (AHL), on behalf of the buyers, submitted the new takeover proposal to the apex regulator, the Securities and Exchange Commission of Pakistan. (SECP).
The buyers namely Wilmar Pakistan Holdings Pte. Ltd (WPH), Unity Wilmar Agro (Private) Limited (UWA), Muhammad Farrukh and Fehmida Amin, already own 53.59% (or 639.90 million shares) of Unity Foods.
Unity Foods Limited (UFL), a publicly listed company on the PSX, is primarily engaged in the production and processing of edible oils, industrial fats, meal and various feed ingredients for the poultry and livestock sectors of Pakistan.
The purchasers have made firm financial arrangements to fulfill their obligations under the public offering by satisfying the trustee in the offering. These arrangements include a bank guarantee of Rs 6.89 million created by the purchasers in favor of Arif Habib Limited, the offer manager, for the payment of shares offered to the manager in accordance with the terms of the public offer as stated in the offer letter.
Offer valid until June 12, 2024. UFL may accept offer between June 6 and June 12, 2024.
The letter of acceptance reads: “I/we, the undersigned, hereby intimate my/our irrevocable acceptance of the offer made by the purchasers for the sale to the purchasers of the shares of UFL offered… at Rs24.89 per share share on the terms and conditions set out in the letter of offer and the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.”
Wilmar International Limited, a distinguished Fortune 500 company, reaffirms its commitment to Pakistan’s economy through its investment in UFL, demonstrating confidence in the resilience and potential of Pakistan’s economic landscape. This partnership not only strengthens bilateral business ties but also highlights the central role of UFL in attracting foreign investment, promoting economic growth and facilitating development in Pakistan.
WIL is the ultimate acquirer or the ultimate controlling shareholder of WPH. WIL also controls UWA, with an effective shareholding of 52%.
Founded in 1991 and headquartered in Singapore, WIL is today the leading agribusiness group in Asia. WIL ranks among the largest listed companies by market capitalization on the Singapore Stock Exchange. The business activities of WIL and its group companies (Wilmar Group) include palm oil cultivation, oilseed crushing, edible oil refining, flour and rice milling, sugar milling and refining, consumer product manufacturing, ready meals, catering products, specialty fats , oleochemicals, biodiesel and fertilizers as well as food park operations.
Wilmar Group has over 1,000 manufacturing plants and an extensive distribution network covering China, India, Indonesia and about 50 other countries and regions.
With this intended equity raise, WPH and its partners look forward to making a significant contribution to the growth and prosperity of the UFL and the wider Pakistani economy.
Published in The Express Tribune, April 25u2024.
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