UK ingredients firm Tate & Lyle has entered into an agreement to sell its Vietnamese sugar interests to TH Milk Food Joint Stock Co. for GBP33m (US$54m).
Under the conditional contract, Tate & Lyle will also receive its share of the value of working capital and net cash to be retained by the business upon completion.
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The deal is expected to close in the first half of this year, Tate & Lyle said today (20 April). However, it remains subject to a number of conditions, including Vietnamese regulatory approval and the exercise of pre-emption rights by Tate & Lyle;s partner, Mitr Phol Saturn Investments.
The move is in line with Tat e& Lyle’s strategy, announced last July, to divest businesses in its struggling sugars division, including EU sugar refining, molasses and Vietnamese sugar. At the time, the company said that proceeds would be used to pay down debt and reorganise its balance sheet.
Last September, the company sold its EU sugar refining operations to American Sugar Refining, Inc. for GBP211m and in December it sold its molasses business to grain trader W&R Barnett Ltd for GBP67m.
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