Dairy producer Hastun Agro Product Ltd. (HAPL) has entered into a pact with Naga Ltd. closed to sell its Ready-to-Eat (RTE) business and ‘Oyalo’ brand for £25m.
On Wednesday, HAPL’s board of directors approved the sale and transfer of all assets of the RTE business (excluding land and buildings, boxes and cans). Naga Ltd is an outsider and not affiliated with the promoter/promoter group/group company.
“This is not a sale. The transaction will be effective by the end of April 2022,” it said in a regulatory filing.
HAPL considered selling the RTE business as the best offer given its contribution to annual sales, which was less than 0.5% of the company’s total sales.
Further RTE business with a lower volume is also not profitable. The board is confident that the hiring will not affect HAPL’s profitability, it said.
As of March 2021, RTE’s net assets (based on gross value of assets) were £59.87 million (5.86% of the company’s net assets), while HAPL’s net assets were £1,021.51 million.
The RTE range of pizzas and pastas were manufactured and sold under the Oyalo brand.