Inner Mongolia Yili Industrial Group, one of China’s largest dairy businesses, has withdrawn its offer for a majority stake in Pakistan’s Fauji Foods.
Dairy firm Fauji Foods notified markets of Yili’s exit from the deal, which would have seen the latter take a 51% holding in the company, in a filing to the Pakistan Stock Exchange yesterday (29 April).
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The two sides were unable to reach an agreement over the sale and the transfer of shares and “as the time period to make the offer has lapsed”, Yili has withdrawn, according to the filing.
Yili first disclosed its interest in acquiring the firm, which is a subsidiary of Fauji Fertilizer Bin Qasim Ltd., to the Shanghai Stock Exchange in July. Fauji Foods markets a range of dairy and juice products under the brand name Nurpur.
Back in March, Fauji Foods said the country’s Securities and Exchange Commission had granted Yili a 90-day extension until 29 April to put in a public offer for the Lahore-based business. No financial terms have ever been disclosed.
Formerly Noon Pakistan Ltd., Fauji Foods’ origins date back to 1966. It owns a plant based in Bhalwal in the Sargodha district producing butter, cheese, UHT milk, pasteurised milk, tea whitener, flavoured milk, cream, ghee, honey and jam.
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