US based Ingredion to sell majority stake in Rafhan Maize to Nishat Hotels & Properties

Ingredion Incorporated, the majority shareholder of Rafhan Maize Products Company Limited (RMPL), has signed a conditional agreement to sell its 51.04% stake in RMPL to Nishat Hotels and Properties Limited.

RPMPL, one of Pakistan’s largest agro-based companies, disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.

“We have been informed by our majority shareholder, Ingredion Incorporated, that they have entered into a conditional Share Purchase Agreement with Nishat Hotels and Properties Limited for the sale of their 51.04% shareholding in the company,” read the notice.

RMPL shared that through this transaction, Ingredion will reduce its equity in the company.

“Completion of the transaction remains subject to the satisfaction of various conditions agreed in the agreement, and relevant regulatory approvals,” it added.

Earlier in May, it was learnt that Ingredion Incorporated, a US-based food and beverage ingredient provider, was evaluating offers to sell its stake in RMPL.

Following the announcement, Nishat Hotels and Properties Limited, a part of Nishat Group, has expressed its intention to acquire up to 75.69% stake in RMPL.

Nishat Hotels & Properties Limited primarily owns, manages, and operates a shopping mall, hotel, and banquet halls under the names of ‘Nishat Emporium’ and ‘Nishat Hotel’. The company also operates in the real estate business under the name of ‘Nishat Residences’, which mainly comprises residential apartments.

Meanwhile, RMPL started its operations in Pakistan as a corn refining industry in 1953. Over the course of years, the company has grown into one of the biggest agro based industries of Pakistan.

The company produces a variety of food ingredients and industrial products using maize as a basic raw material. RMPL turned into a public limited company in 1985.