Matco Foods Limited (PSX: MFL) disclosed on October 15 that IGI Investments (Private) Limited has made a non-binding offer to purchase its entire 100 percent stake in Matco Corn Products (Private) Limited.
The deal would see the wholly owned subsidiary transferred to IGI Investments, itself a wholly owned subsidiary of IGI Holdings Limited.
On the same day, Matco Foods' board of directors reviewed the proposal and gave management permission to begin discussions and negotiations with the prospective buyer.
Management has been instructed to forward its final recommendations, including any suggested terms and conditions, to the board for formal review and approval.
Arif Habib Limited has been appointed as the sell-side adviser for the potential transaction.
The company added that further disclosures will be issued in line with applicable laws and regulations as the deal moves forward and material developments arise.
Matco Foods Limited, incorporated in Karachi on April 14, 1990, was listed on the Pakistan Stock Exchange in February 2018.
It processes and exports basmati and other rice varieties, rice glucose, rice protein, rice syrup and maltodextrin, Himalayan pink salt, spices and dessert mixes under the Falak brand, as well as private-label food items sold in more than 60 countries.
Its business also includes corn starch and animal nutrition products.
