Engro Foods has announced that Engro Foods Netherlands BV – 100% owned subsidiary of Engro Foods – has entered into a share purchase agreement for the sale of its North American business that includes Engro Foods Canada.
According to a notice sent to the Karachi Stock Exchange, the transaction is expected to be completed by October 31. Engro Foods expects a pre-tax loss of Rs475 million in the third quarter of 2014. Engro Foods Canada posted a loss of CAD0.67 million, or Rs61.2 million, in the first half of the current year.
According to Topline Securities, it expects Engro Foods to post a one-time loss of Rs236 million, or Rs0.31 per share, in the third quarter. However, future earnings will improve by 6%-7%, with the earnings per share impact of Rs0.15-0.2 due to the absence of the loss-making arm.
Published in The Express Tribune, September 27th, 2014.
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