Mitchell’s key shareholders halt stake sale talks with CCL Holding
Mitchell’s Fruit Farms Limited (MFFL), a key player in Pakistan’s food manufacturing industry, announced that two of its major shareholders, Syeda Maimanat Mohsin and Syeda Matanat Ghaffar, have decided “not to proceed” with discussions regarding the sale of their stake to CCL Holding (Private) Limited.
The listed company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
“Mitchell’s Fruit Farms Limited has received notice from two of its substantial shareholders Syeda Maimanat Mohsin and Syeda Matanat Ghaffar that they have decided not to proceed with discussions regarding the acquisition of their shares by CCL Holding (Pvt.) Limited,” read the notice.
The development follows a prior notice released by MFFL last month, in which shareholders holding over 40% of MFFL’s issued share capital had expressed their intentions to explore strategic options, including a potential divestment of their entire stake.
“Syeda Maimanat Mohsin and Syeda Matanat Ghaffar (shareholders), holding in aggregate 40.63% of the issued share capital of the company, are exploring various strategic options in relation to their investment in the company, including the potential divestment of their entire stake in the company,” MFFL said in a notice back then.
Mere hours after the said announcement, CCL Holding (Private) Limited, a subsidiary of CCL Pharmaceuticals, had also submitted a public announcement of intention (PAI) to acquire both a 50% stake and controlling interest in the Pakistani manufacturer of farm and confectionery products.
As per the MFFL’s latest financial results, the company recorded a profit-after-tax of Rs15.3 million in the first quarter of FY25, an increase of 38% compared to Rs11.1 million posted in the same period last fiscal.
As a result, the company saw its earnings per share (EPS) increase to Re0.67 in 1QFY25, up from Re0.49 in 1QFY24.
Mitchells Fruit Farms Limited has a history that dates back to 1933. After Independence, the company’s name was changed from Indian Mildura Fruit Farms to Mitchells Fruit Farms Limited.
The company went public in 1993 and was listed on the stock exchange in 1996. The principal activity of the company is manufacturing and sales of various farm and confectionary products including beverages, ketchups and sauces, preserves, read-to-cook and ready-to-eat food range etc.
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