India’s largest cooking oil and soya foods firm Ruchi Soya has confirmed it is likely to sell a majority share of the company by June.
The firm, which is undergoing bankruptcy proceedings with the India National Company Law Tribunal (NCLT), had received offers from both within India, such as from commodity trader Sakuma Exports, and overseas, with Malaysian Sime Darby Plantations’ expression of interest, wrote just-food on 27 February.
“This is preliminary at this point in time and still subject to due diligence and many other steps before we can come up with an indicative offer price,” Sime Darby Plantation managing director Mohd Bakke Salleh told Reuters on 22 February.
Ruchi Soya said, without naming any companies, that it had received offers ranging from 80bn to 100bn rupees (US$1.48bn-1.85bn) for a majority stake and, as a result, had come close to a resolution with the NCLT.
“Large fast-moving consumer goods (FMCG) players, including large Malaysian companies, are bidding for the 51% stake in the company,” Ruchi Soya said.
According to the firm, a deal would likely be a “game changer” and could help cut its debts from the current 5.9bn rupees (US$90.5M) to 2bn rupees (US$30.7M).
In November 2017, Ruchi Soya said it had signed deal to sell 51% of the company to Thai financing firm Devonshire Capital, along with 100% of its packaged oils business.