The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of 23.20% shareholding in Unity Foods Limited (UFL) by four acquirers, including a Singapore-based investment holding company.
Among the acquirers is Wilmar Pakistan Holdings Pte. Limited, a wholly owned subsidiary of Wilmar International Limited, a Fortune 500 company incorporated in Singapore.
UFL, a publicly listed company on the Pakistan Stock Exchange, is primarily engaged in the manufacturing and processing of edible oils, industrial fats, flour, and various feed ingredients for Pakistan’s poultry and livestock sectors.
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The other three acquirers include Unity Wilmar Agro (Private) Limited, a private limited company incorporated in Pakistan involved in the edible oils business, and two individual Pakistani investors who are also existing shareholders of the target company.
The public announcement of the offer to acquire 277,070,908 ordinary shares (constituting 23.20% of the shareholding interest) and joint control of Unity Foods Limited under the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, was made on March 19.
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The offer was made by Wilmar Pakistan Holdings Pte. Ltd, Unity Wilmar Agro (Private) Limited, Muhammad Farrukh, and Ms. Fehmida Amin (Acquirers) through Arif Habib Limited (Manager to the Offer).
Arif Habib Limited, on behalf of the acquirers, submitted public announcement of the offer.
According to a CCP spokesperson, “CCP’s merger analysis revealed that the proposed transaction will not result in dominance of the acquirers in the relevant market, post-transaction. Therefore, the merger has been authorised.”
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“This approval reflects the confidence of international investors in Pakistan’s economy and its potential for growth,” the spokesperson added. “Wilmar International’s investment in Unity Foods reaffirms its commitment to Pakistan’s economy, showcasing confidence in the resilience and potential of the country’s economic landscape.”
The approval of this merger is expected to help enhance consumer choice and spur innovation in the food business sector, ultimately benefiting Pakistani consumers.