Nishat Group, Monnoo family sign deal to buy Rafhan Maize

Ingredion Incorporated and the Monnoo family have entered into Share Purchase Agreements (SPAs) with the Nishat Group for the sale of up to 75.10% of their shareholding in Rafhan Maize Products, in one of the largest merger-and-acquisition deals in Pakistan in nearly two decades.

The deal gives the Nishat Group a controlling stake in Rafhan Maize, which has a market capitalization of approximately PKR 100 billion ($355 million).

The acquisition covers up to 6,936,558 shares, representing up to 75.10% of Rafhan Maize.

Rafhan Maize is the market leader in Pakistan’s starch industry, operating three production facilities nationwide, with a production capacity 5.3x its nearest competitor.

A statement said Ingredion will retain a strategic stake in the company and continue to support the Nishat Group.

Last week, a consortium of Nishat Group companies and associated individuals announced its intention to acquire up to 75.10% of the shares and control of Rafhan Maize Products Company Limited.

A notice submitted to the Pakistan Stock Exchange listed as acquirers Nishat Hotels and Properties Limited, D.G. Khan Cement Company Limited, Nishat Mills Limited, Nishat Power Limited, Nishat Chunian Power Limited, Lalpir Power Limited and Pakgen Power Limited. The filing also named individuals Naz Mansha, Raza Mansha, Umer Mansha and Hassan Mansha as part of the consortium.

The announcement followed the withdrawal earlier this week by Nishat Hotels and Properties Limited of its previous public announcement of intention to acquire up to 75.69% of Rafhan Maize. The company cited delays in obtaining the required statutory clearances for the withdrawal.