Nestle is now in direct competition with Tata Consumer for Ching's Secret spices. Although The Kraft Heinz and ITC company are still in this race, but experts say that the battle between Nestle and Tata to buy Ching's Secret and Smith & Jones is going to be very interesting. Where Nestle is working on an all-cash offer. At the same time, Heinz is considering acquiring 75 percent and making the rest public. No statement has come out from the Tata Group.
These companies are contenders
The shareholders of Capital Foods had made up their mind to sell the company last year itself. Invus Group holds 40 per cent, General Atlantic holds 35 per cent and Capital Foods founder chairman Ajay Gupta holds 25 per cent. Goldman Sachs has given a value of $ 500-800 million to the company, which is managing everything regarding its sale. About a dozen global and local companies, including Norway's Orkla, Hindustan Unilever, Nissin Foods and General Mills, were approached to buy the company. Recently, three top contenders have emerged after submitting non-binding bids.
What is the planning of Nestle
The ET report quoted sources as saying that Nestle is working on an all-cash offer, while some others like Kraft have suggested acquiring up to 75 per cent of the company and taking it public. While General Atlantic is considering a complete exit, Invus and Gupta are set to stay for future value accretion based on the offers on the table. Ajay Gupta told ET that he would not like to respond to market speculation and rumours, but Capital Foods' brands Ching's and Smith & Jones are growing rapidly across India. We are approaching investors to invest in the business. There is no statement from GA and Invus Group.
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