The news for Engro Foods acquired by Dutch company is true. This comes in as FrieslandCampina Pakistan BV (FC Pakistan) has completed the acquisition process. The majority stake in Engro Foods is sold at $446.81 million. It will now be bringing in new expertise and new product lines.
The Dutch company is fully known in Netherlands dairy market. About 51% stake at Rs 120 ($1.14) per share comes as Engro Foods acquired by Dutch company moves forward. 47.1% shares or 361.29 million shares are taken from Engro Corporation which is the parent company. Moreover, 3.9% or 29.66 million shares are acquired from general public. All of this has been confirmed by Faiz Chapra’s (company secretary) notification to the Pakistan Stock Exchange (PSX).
The reactions
Engro Foods’ share price came down 1.05% (Rs 1.82) as they closed at Rs 170.03 with 1.34 million volume shares. This was the exchange that took place on Monday while Engro Corporation’s share prices increased (0.81% or Rs 2.53). They closed at Rs 311.08 with 555,100 share volume. Samad Dawood is the Chairman of Engro Foods Board of Directors.
He says that Engro Foods was not only able to achieve its elevated consumer delight vision and wellbeing. But they have also added nourishment to the market to enhance 12 million lives each day through sincerity and motivation. Samad adds that it is only the beginning as a brighter future for their organization through the novel collaboration is yet to come. The Director is confident that it will bring growth and prosperity for all. It will prove Engro’s commitment for growth and impact over future generations.
FrieslandCampina has an experienced legacy that is now brought to Pakistan this way. Currently, there is packaged milk, juices, and ice cream but more products are on the way. However, the final acquisition price shall be calculated within 40 days after closing statements are prepared. It is because there shall be adjustment for certain debt and debt-like items, cash equivalents, working capitals, etc. The different between the estimated and the calculated price shall be then settled by the two.
