Mitchell's Fruit Farm prepares for sale
20
KARACHI: Mitchell’s Fruit Farms Ltd on Thursday announced that it has shortlisted two firms for a strategic sale of shares along with transfer of management control.
“The board of directors was informed of the bidding process and firm intentions received from Waves Singer Pakistan Ltd and Bioexyte Foods Pvt Ltd,” the company said in a filing with the Pakistan Stock Exchange.
“The board considered the key recommendations from the management and authorised Najam Aziz Sethi, Syed Manzar Hassan and Nauman Munawar to negotiate and finalise terms of documentation with preferred bidder,” the notice said.
Both companies began their due diligence of the food giant in early August. Bioexyte has bid to acquire 30 per cent of issued and paid-up capital through rights shares along with management control.
A source with knowledge of the transaction told Dawn that Mitchells has been running growing losses for almost four years now and in the last 18 months the directors of the company have had to loan it up to Rs150 million to keep it afloat. In 2018, the company declared a loss of Rs 292.61m, which was Rs30m in 2017.
Published in Dawn, November 21st, 2019
Read more
On DawnNews
Comments (20) Closed
Nov 21, 2019 09:13am
Purchasing power depletion of the people and competition from the rivals at the sane time penetration of the Internet among the people made the company to lose control of their sales.
Recommend
0
Nov 21, 2019 09:19am
Mitchells fruit farms Renala, Khurd a brand of pride for Pakistan and the world as it processes the real, original Organic orchards, fruits sold in the domestic market. Despite the regulatory regime, the authorities do not realise, note, act, regulate the difference between the Organic and the regular synthetic/chemical based grown with pesticides, chemicals with tons tremendous competition from China. This is the Governmental, Regulatory authorities responsibility to wake up and stop Pakistan agricultural products go into astray, whether it be livestock, poultry, milk, vegetables, fruits etc., etc. ORGANIC should have the class of scientists who realise the gift of Allah to mankind, vis-a-vis chemical produced technology imported from the West and dumped on the geometrically increasing population challenges to market to the population with bright ad., marketing campaigns.
Recommend
0
Nov 21, 2019 10:47am
The company failed to meet the challenges of keeping up with new customer demands!
Recommend
0
Nov 21, 2019 10:57am
A sad day. Growing up was all Mitchell’s.
Recommend
0
Nov 21, 2019 11:53am
The Mitchell's family children studied at the Jesus & Mary Convent in Murree in the 1940s. Sorry to know they have been suffering losses. I wonder if the company is still managed by the Mitchells, that was a British family that set up farms in Punjab before partition
Recommend
0
Nov 21, 2019 12:03pm
Sad to see a childhood icon going under. No ketchup in the world like Mitchell’s.
Recommend
0
Nov 21, 2019 12:13pm
foreign companies have overtook from local companies
Recommend
0
Nov 21, 2019 12:31pm
Every business has a life and only those business survive which change with time .... Nokia has operated in various industries over the past 150 years ... Mitchells still has a brand value despite recent losses and it's time to change it
Recommend
0
Nov 21, 2019 12:35pm
@Haroon Rashid, Very important issue for the health of the nation.
Recommend
0
Nov 21, 2019 12:37pm
Najam Sethi has to sell In-Laws old business as he could not manage it but has the audacity to advise how to run a government.
Recommend
0
Nov 21, 2019 02:18pm
The only jam I would recommend is Mitchells sad to see them struggling.
Maybe one day China and its product bankrupt all the local companies ... so before it happens gov. have to Tax the chines product aggressively.
Recommend
0
Nov 21, 2019 02:18pm
Pakistan is no longer a safe place for legitimate business. There is no enforcement of copy rights and quality control. A few dubious companies will take your market share despite the fact that neither they pay taxes nor they supply quality products. Authorities can just watch and enjoy the demise of business.
Recommend
0
Nov 21, 2019 03:34pm
A historic move for the famous Mitchell Fruit Farm in Renala Khurd near the great city of Okara, Islamic Republic of Pakistan.
Recommend
0
Nov 21, 2019 03:46pm
another one lost to tabdeeli.
Recommend
0
Nov 21, 2019 05:03pm
The amounts paid to management must have been too high for the company business. They should also have found foreign export markets.
Recommend
0
Nov 21, 2019 05:05pm
Until Pakistani product makers must get into export mindset, they will go under from competition or any economic down turns. For too long Pakistani products are not seen in shops in foreign countries. Before they were found in abundance.
Recommend
0
Nov 21, 2019 11:41pm
When you are selling corn syrup and sugar disguised as fruit, this had to happen.
Recommend
0
Nov 22, 2019 03:14pm
Demise of yet another private sector business icon of the "Land of the Pure."
Recommend
0
Nov 22, 2019 06:21pm
We hope new owner will reform the very well known company.
Recommend
0
Nov 22, 2019 09:02pm
Sad ... Mitchell's, a synonym for quality and taste, admiringly maintained through decades. I grew up finger licking their tomato sauce, apple and mango jam, fragrant and spicy kasundi , their heavenly lemon cordial and orange squash, butterscotch candies and the list goes on. A childhood friendship that grew stronger with time. Don't know what will happen to it now.
Recommend
0
