(Yicai Global) May 2 -- Chinese dairy giant Inner Mongolia Yili Industrial Group has withdrawn its offer to buy Fauji Foods, as the two were unable to agree on the terms of the sale.
China's largest dairy company, headquartered in Hohhot, capital of China's northern Inner Mongolia Autonomous Region, announced this decision in a letter to the Pakistan Stock Exchange on April 29.
State-backed Yili, which had planned to acquire up to 51 percent of the shares of the Lahore-based company at the end of July 2018, submitted an investment letter of intent for that purpose to its Karachi-based parent Fauji Fertilizer Bin Qasim.
Fauji Foods, which formed in September 1966, is a domestically-listed company that mainly produces milk-based products and fruit juice. Its market value is about PKR17.3 billion (USD170 million), public information shows.
The firm has faced mounting losses in recent years, running in the red to the tune of PKR4.3 billion from 2015 to 2017.
Editor: Ben Armour