KUALA LUMPUR: Nestle (Malaysia) Bhd will explore the potential sale of its ice cream business to UK-based Froneri International Ltd.
This comes following the announcement by Nestle Malaysia's ultimate holding company, Nestle SA, that it will dispose of the remainder of its global ice cream business to Froneri.
According to news reports, Nestle SA will focus on its coffee, petcare, nutrition and food and snacks units and was in advanced negotiations to sell the ice cream business to Froneri.
Froneri is a joint venture between European buyout firm PAI Partners and Nestle, which owns Nestle's European ice cream businesses and several selected ice cream operations in other regions.
However, Nestle Malaysia's business was not part of the original scope of business.
Nestle Malaysia said in a filing with Bursa Malaysia it will now initiate a process to explore the potential sale of its ice cream business to Froneri.
"This process will involve thorough due diligence, comprehensive engagement with relevant local stakeholders, and strict adherence to all applicable legal, regulatory, and governance requirements," it said.
