Promasidor Holdings, producers of Cowbell milk, could be on the verge of a $1.5bn sale African food and drink group, Promasidor Holdings Limited, sources say.
The group has not publicly disclosed its intentions to be acquired, however, persons familiar with the situation made this known.
According to the anonymous persons, who asked not to be identified because they were discussing proprietary information, the company is working with a consultant to evaluate interest from potential purchasers. Promasidor might fetch $1.5 billion in a sale.
In the light of this, the process is still in its early stages, and Promasidor may opt not to sell if interest is low, by the account of the anonymous persons.
Ajinomoto, a Japanese seasoning giant company, holds a significant interest in Promasidor Ltd and has made no move to liquidate its stakes. In 2016, Ajinomoto acquired a third of the business, that is, a 33.33% stake in Promasido.
This comes after a May analysis by Oxford Economics Africa revealed that rising worldwide food prices would impact Africa’s economies the hardest and may spark societal unrest if governments fail to soften the shock.
In addition, Moody’s Investors Service, the bond credit rating business of Moody’s Corporation, has said that due to the persistent global food and energy price shock, it forecasts increasing social and political risks in the Middle East and Africa over the next 18 months.
Founded in 1979, Promasidor manufactures a range of food and drink products that are sold across the African continent. Its brands include Cowbell powdered milk and Yumvita cereal. Ajinomoto acquired around a third of the business in 2016.
The group manufactures and supplies seasonings and processed foods in 36 countries throughout Africa. It produces and sells powdered beverages, flavor seasonings, powdered milk, cereals, and other food products.
Promasidor mainly operates in Nigeria, the Democratic Republic of the Congo, Ghana, Algeria, and Angola.
In 2016, during the share purchase agreement between Ajinomoto and Promasidor, the group was valued at approximately $1.5 billion.
Efforts to get reactions from the company proved abortive as calls and texts were not responded to.