IGI Investments (Private) Limited expressed its intent to acquire a substantial stake in Mitchell’s Fruit Farms Limited (MFFL), a key player in Pakistan’s food manufacturing industry.

lGI Holdings Limited, the parent company of IGI Investments, disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We have been informed by IGI Investments that its Board of Directors (BoD) accorded its in-principle approval, in its meeting held on December 11, 2024, to evaluate and conduct due diligence for a potential transaction for the purchase of up to 40.63% shareholding from two substantial shareholders Syeda Maimanat Mohsin and Syeda Matanat Ghaffir (substantial shareholders) of Mitchells Fruit Farms Limited (Mitchells),” read the notice.

IGI Investments clarified that the proposed transaction shall be carried out “subject to the results of due diligence, finalization of transaction structure, negotiation of the purchase price with the substantial shareholders and fulfilment of all applicable corporate and regulatory approvals and compliance with applicable laws including Securities Act, 2015”.

The company added that it already holds 3.72% shareholding of Mitchells.

“The BoD of IGI Investments have authorized its Chief Executive Officer (CEO) and authorized director(s), jointly and/or singly to take such necessary steps as are applicable in accordance with applicable laws including but not limited to the negotiation of purchase price, finalization of transaction structure, and appointment of legal and financial advisors for due diligence and Manager to the Offer under Securities Act, 2015,” it added.

Mitchells is a public limited company, which is listed on the Pakistan Stock Exchange (PSX) and is principally engaged in the manufacture and sale of various confectionery and grocery products.

The announcement comes shortly after CCL Holding (Private) Limited, a subsidiary of CCL Pharmaceuticals, submitted a public announcement of intention (PAI) last month to acquire a 50% stake and controlling interest in MFFL. The PAI followed MFFL’s announcement that its majority shareholders, Syeda Maimanat Mohsin and Syeda Matanat Ghaffar, were seeking to divest their stake.

However, days ago, MFFL’s major shareholders decided “not to proceed” with discussions regarding the sale of their stake to CCL Holding (Private) Limited.