26th Apr 2021 08:51
(Alliance News) - Tate & Lyle PLC on Monday confirmed it is exploring a break-up by selling a controlling stake in its Primary Products business.
A trimmed down Tate & Lyle would allow the units to "focus their respective strategies and capital allocation priorities and create the opportunity for enhanced shareholder value".
A deal would allow Tate & Lyle to focus on its Food & Beverage Solutions arm, which develops ways to reduce sugar, fat and calories while adding fibre to products. The Primary Products arm produces industrial starches and sweeteners.
"Tate & Lyle notes recent media speculation and confirms that it is in the process of exploring the potential to separate its Food & Beverage Solutions and Primary Products businesses through a sale of a controlling stake in its Primary Products business to a new long-term financial partner," the company said.
"Discussions with potential new partners in the Primary Products business are at an early stage and therefore there can be no certainty that a transaction will be concluded."
The Sunday Telegraph reported that Tate & Lyle has started a GBP1.2 billion auction for the Primary Products division.
Tate & Lyle shares were 6.4% higher at 805.78 pence each in London on Monday morning, the best
performing mid-cap stock.
By Eric Cunha; [email protected]
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