CCL Holdings offers to acquire 50% stake in Mitchells Fruit Farms

Mitchells Fruit Farms (MFFL) saw a 10% surge in share prices on Wednesday after CCL Holding, the parent company of CCL Pharmaceuticals, announced its intention to acquire a majority stake in Mitchells Fruit Farms Ltd (MFFL) through a public offer.

The share price on November 12, the day before the public announcement was PKR 181.91 per share, while the 28-day weighted average share price before the announcement was PKR 170.61 per share.

According to a stock filing by Arif Habib Limited, CCL Holding plans to offer to acquire a 50% stake and controlling interest in the Pakistani manufacturer of farm and confectionery products.

CCL Holding is the parent company of CCL Pharmaceuticals (Pvt) Limited, which focuses on manufacturing and marketing branded generic pharmaceuticals and consumer health products.

Earlier, Syeda Maimanat Mohsin and Syeda Matanat Ghaffar, who collectively hold 40.63% of the company’s issued share capital, announced that they are exploring various strategic options, including potentially selling their entire stake.

According to the company’s latest financial results, MFFL posted a profit-after-tax of PKR 15.3 million in the first quarter of fiscal year 2024-25, up 38% from PKR 11.1 million in the same period last fiscal year.

CCL Holdings also owns two investment and management firms and a general trading company in the UAE, as well as a trading allied and retail businesses in Pakistan along with CCL Pharmaceuticals.

Mitchells Fruit Farms Limited (MFFL) is a Pakistani company primarily engaged in manufacturing and selling various farm and confectionery products.

Established in 1933, the company has grown to become a market leader in its sector, offering a wide range of products including fruit squashes, juices, jams, jellies, sauces, and confectionery items.

MFFL is recognized as an approved supplier to the United Nations World Food Programme (UNWFP).