Unity Foods to invest Rs367 million to acquire Sunridge Foods

Published: May 28, 2019
Email
PHOTO: FOOD SAFETY NEWS

PHOTO: FOOD SAFETY NEWS

PHOTO: FOOD SAFETY NEWS Utility Stores Corporation store in Multan. PHOTO: FILE

KARACHI: Considering the growing demand for whole wheat flour, Unity Foods has announced it will invest Rs367 million for acquiring major share in Sunridge Foods.

The company will acquire 69% shares of Sunridge Foods (Private) Limited, the only company, which is using the modern Swiss technology, ‘PESA Mill’. The latest technology produces 100% whole wheat flour and for this Sunridge Foods has a certification from Pakistan Standards and Quality Control Authority (PSQCA).

With approximately 124-kilogramme per capita consumption, wheat is a dietary staple in Pakistan.

With increasing awareness about food, consumers are demanding more healthy products. Doctors suggest whole grain over refined flour as the latter spikes sugar in blood, said an industry source on condition of anonymity.

“We are pleased to announce that in pursuance of its commitment to expand and diversity of its operations, the management of the company has decided to proceed with the acquisition of 69% shares of Sunridge Foods,” stated the company notice to the Pakistan Stock Exchange (PSX).

The agro-based company will invest Rs367 million against the consideration of 36.65 million shares of Sunridge Foods at Rs10 per share, which constitutes 69% of the paid-up capital of the company.

Unity Foods is financing the acquisition from its own internally generated funds. Sunridge Foods has a capacity to produce 36,000 metric tons of wheat flour per year. Its plant is located at Port Qasim and has an established nationwide distribution network, according to Unity Foods Company Secretary Syed Muhammad Tariq Nabeel Jafri.

Apart from this, last week, Unity Foods witnessed massive activity in share trading after a piece of news surfaced that Wilmar, a Singapore-based Asia’s leading agribusiness group, acquired a 5.73% economic interest in Unity Foods, a market expert revealed.

“It shows the promising outlook of the sector in which Unity Foods is operating, they have successfully attracted foreign investment in their business,” said the market source. “They can also gain synergies from international operation experience and presence of Wilmar.”

Published in The Express Tribune, May 28th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

Leave Your Reply Below

Your comments may appear in The Express Tribune paper. For this reason we encourage you to provide your city. The Express Tribune does not bear any responsibility for user comments.

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.

More in Pakistan