Matco Foods Limited has received a non-binding offer for its Matco Foods corn division and has allowed managers to open talks. IGI Investments (Private) Limited wants the whole of Matco Corn Products (Private) Limited, the corn company Matco owns in full. Matco told the Pakistan Stock Exchange, the country’s main share market, in a filing dated October 15.
What the board has allowed
Directors looked at the offer the same day. They permitted management to hold discussions and negotiations with the possible buyer. Managers must then return with their final advice, including the suggested terms, so the board can review them and decide whether to approve. Nothing has been signed, and neither side is locked in yet.
A non-binding offer is a proposal that can still be rewritten or withdrawn. It shows serious interest without fixing a price or a closing date. The filing gives no price, no timetable and no reason for considering a sale.
The buyer and the adviser
IGI Investments is fully owned by IGI Holdings Limited, so the bidder sits inside the IGI group. If talks succeed and directors later accept the terms, Matco Corn Products would pass from Matco Foods to IGI Investments. For advice on the process, Matco has hired Arif Habib Limited as sell-side adviser, meaning the firm works for the seller.
Matco said it will update the market, as the law requires, whenever the talks produce a material change. Matco Foods has not yet agreed to sell the subsidiary. The board has only allowed negotiations.
Corn starch, rice, and the next step
The Karachi company was incorporated on April 14, 1990, and listed in February 2018. Under the Falak name it handles basmati and other rice, rice glucose, rice protein, rice syrup, maltodextrin, Himalayan pink salt, spices and dessert mixes, and it also supplies private-label foods to buyers in more than 60 countries. Corn starch and animal nutrition products are part of the same group.
The stake described in the filing is the holding in Matco Corn Products. Talks can still end without a deal. Only after directors approve terms would a sale of the Matco Foods corn division move ahead. Until that vote, the corn company stays inside Matco Foods.
Aasan alfaaz mein
Matco Foods apni corn company bechne ki baat kar raha hai. IGI Investments ne 100 percent hissa kharidne ki ek shuruati offer di hai. Board ne management ko baat-cheet ki ijazat de di hai, magar deal abhi final nahi. Aam logon ke liye chawal ya corn ki qeemat mein abhi koi elaan nahi hua.
