KARACHI: IGI Investments (Private) Limited has formally withdrawn its public announcement of intention (PAI) to acquire a 40.63% stake in Mitchell’s Fruit Farms Limited (MFFL), after its offer failed to gain acceptance from the sellers, according to a notice submitted to the Pakistan Stock Exchange (PSX) on Tuesday.
The withdrawal, communicated by IGI Holdings Limited — the parent company — comes after due diligence was completed but a consensus on pricing could not be reached within the stipulated timeframe. The PAI, originally announced in December 2023, pertained to shares held by substantial shareholders Syeda Mainanat Mohsin and Syeda Matanat Ghaffar.
“After conducting due diligence of the target, their offer price has not been accepted by the sellers within the stipulated timeframe and is accordingly lapsed,” IGI Holdings informed the PSX.
IGI Investments currently holds a 3.72% stake in Mitchell’s, one of Pakistan’s oldest listed food manufacturing companies known for its range of fruit-based products, confectionery, and grocery items.
This is not the first time a potential acquisition of Mitchell’s has fallen through. In early 2024, CCL Holdings (Private) Limited — a subsidiary of CCL Pharmaceuticals — also expressed interest in acquiring a 50% stake and management control of the company. However, those talks similarly collapsed when the major shareholders decided not to proceed with the transaction.
The back-to-back withdrawal of two major acquisition bids suggests hesitation among shareholders regarding valuation or the company’s strategic direction. It also underscores the challenges in executing M&A transactions in family shareholding and legacy operations, which often complicate deal-making.
Mitchell’s Fruit Farms Limited remains listed on the PSX, and despite acquisition interest, its future ownership trajectory remains uncertain amid recurring failed suitor attempts.