July 04, 2022 (MLN): The shareholders of Mehran Sugar Mill Limited (MRNS) have approved the divestment of entire shareholding in one of its associated companies, namely Uni-Food Industries Limited to a prospective buyer Sunridge Foods Private Limited, a wholly subsidiary of Unity Foods, company's notice to bourse said today.
The transaction will be made at a total cost of Rs1.2 billion. The shareholders approved that the portion of the payment will be used to settle the liabilities of associated company and the balance portion is to be paid against the entire shareholding of associated company in proportion to the respective shareholder's shareholding subject to finalization and execution of the definitive agreement and compliance with all applicable legal and statutory requirements, the notice read.
To recall on June 7, the Board of Directors of the company decided to divest the entire shareholding Uni-Food Industries Limited to Sunridge Foods Private Limited.
Earlier, on June 06, 2022, Uni-Foods had announced that Sunridge decided to make an offer to purchase 100% shareholding of Uni-Food Industries Limited which will help facilitate it to enter the value-added product segment in the confectionery business for sale in both local and international markets.
To note, Uni-Foods Industries Limited was established in Pakistan as a public limited company in September 2016. The company's main activity is to manufacture, sell, and distribute food products.
Uni-Foods owns a bakery and confectionery brand by the name “Good Goodies Cakes”.
The shareholders further resolved to authorize the Company’s CEO to take all necessary actions and do all deeds to execute the agreement.