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 partners. The aim is to assume management control of the company by injecting foreign investment.
The group and its partners have proposed to acquire an additional 277.07 million shares at Rs24.89 per share, amounting to a total new investment of Rs6.89 billion.
In a notification to the Pakistan Stock Exchange (PSX) on Wednesday, the offer’s manager, Arif Habib Limited (AHL), on behalf of the acquirers, submitted the proposal for the new acquisition to the apex regulator, the Securities and Exchange Commission of Pakistan (SECP).
The acquirers, namely Wilmar Pakistan Holdings Pte. Ltd (WPH), Unity Wilmar Agro (Private) Limited (UWA), Muhammad Farrukh, and Fehmida Amin, already hold 53.59% (or 639.90 million shares) of Unity Foods.
Unity Foods Limited (UFL), a publicly listed company on PSX, is primarily involved in the manufacturing and processing of edible oils, industrial fats, flour, and various feed ingredients for Pakistan’s poultry and livestock sectors.
The acquirers have made firm financial arrangements to fulfil their obligations under the public offer, satisfying the manager to the offer. These arrangements include a bank guarantee amounting to Rs6.89 million created by the acquirers in favour of Arif Habib Limited, the offer’s manager, to pay for shares tendered to the manager in accordance with the terms of the public offer, as stated in the offer letter.
The offer is valid until June 12, 2024. UFL may accept the offer between June 6 and June 12, 2024.
The acceptance letter reads, “I/we, the undersigned, do hereby communicate my/our irrevocable acceptance of the offer made by the acquirers with respect to the sale to the acquirers of the shares of UFL tendered…at Rs24.89 per ordinary share on the terms and conditions set out in the offer letter 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 collaboration not only strengthens bilateral business ties but also underscores UFL’s pivotal role in attracting foreign investment, fostering economic growth, and facilitating development in Pakistan.
WIL is the ultimate acquirer or the ultimate controlling shareholder of WPH. WIL also ultimately controls UWA, with an effective shareholding interest of 52%.
Founded in 1991 and headquartered in Singapore, WIL is today Asia’s leading agribusiness group. WIL is ranked among the largest listed companies by market capitalisation on the Singapore Exchange. The business activities of WIL and its group companies (Wilmar Group) include oil palm cultivation, oilseed crushing, edible oils refining, flour and rice milling, sugar milling and refining, manufacturing of consumer products, ready-to-eat meals, central kitchen products, specialty fats, oleochemicals, biodiesel and fertilisers as well as food park operations.
The Wilmar Group has over 1,000 manufacturing plants and an extensive distribution network covering China, India, Indonesia, and some 50 other countries and regions.
With this intended increase in shareholding, WPH and its partners look forward to contributing significantly to the growth and prosperity of UFL and the broader Pakistani economy.
Published in The Express Tribune, April 25th, 2024.
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