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Tinashe Makichi Business Reporter
National Foods’ proposed acquisition of a 50 percent stake in dairy focused company, Pangolin Products (Pvt) Limited has fallen away as the parties involved could not agree on satisfactory commercial terms.
Natfoods managing director Mr Mike Lashbrook confirmed the collapse of the deal yesterday but could not give finer details with regards the structure of the transaction.
Pangolin is a dairy and juice company which was formed by Probrands directors Neil Philp, Calum Philp and Tidings Chimpondah with the idea of focusing on the production of long life milk as a way of diversifying business.
“We have not been able to complete the discussions surrounding the transaction and this was because we could not agree on satisfactory commercial terms.
“I am not in a position to comment on the specifics of the transaction.
“All I can say is we could not agree on something that was satisfactory for both parties involved in the transaction,” said Mr Lashbrook.
The Innscor Africa Limited’s subsidiary,Natfoods wanted to invest in the company as a way of business diversification.
Mr Lashbrook said there are a number of growth opportunities which the company was working on.
In terms of the outlook of Natfoods, Mr Lashbrook said the company sees continued and fierce competition for the consumer dollar.
He said management’s key focus is to continue driving revenue while continuously pursuing opportunities to optimize the company’s cost base.
Mr Lashbrook said growth into new categories and products remains a key theme and the company will continue to seek both organic and acquisitive growth opportunities.
Online Reporter