Sunridge to make offer for purchase of 100pc shareholding of UFIL

KARACHI: Sunridge Foods, a wholly-owned subsidiary of Unity Foods Limited has decided to make an offer for purchase 100 percent shareholding of Uni-Food Industries Limited (UFIL).

The transaction will be Rs 1.2 billion including bank and other liabilities, material information sent to Pakistan Stock Exchange on Wednesday said.

The proposed transaction shall be subject to the execution of a definitive agreement and compliance with all applicable statutory and legal requirements, it added.

Uni-Food Industries Limited is a Consortium/Joint Venture between Habib Sugar Mills Limited (HABSM), Faran Sugar Mills Limited (FRSM) and Mehran Sugar Mills Limited (MRNS) having stake of 41 percent, 35 percent and 24 percent, respectively. UFIL owns a bakery and confectionary brand named “Good Goodies Cakes”.

As per the latest accounts, FRSM and MRNS have taken full impairment against their UFIL investment whereas HABSM has still Rs 127 million on its books under UFIL investment, Muhammad Saad Ziker at Topline Securities said. However, the above-mentioned transaction could result in a one-off gain (net of any current liabilities) for the selling parties.

Copyright Business Recorder, 2022