Yildiz’s Ak Gida receives several bids for stake

Turkey-based food group Yildiz Holding has received several bids for a stake in its dairy business Ak Gida that could be worth approximately $950m.

Yildiz had announced in January that it had mandated Turkish investment bank Unlu and HSBC to explore sale options for its carbonated-beverage brands and facilities for both an initial public offering (IPO) and a strategic partnership.

Ak Gida had sales of YTL2.04bn in 2014, which was an increase of around 16.7% from the previous year. It exports most of its products to the Middle Eastern countries with last year’s exports amounting to YTL84.7m.

Ak Gida had said in March that it had applied to the Capital Markets Board for an IPO of up to 45% of the company.

However, Reuters cited sources as saying that while the company was considering the IPO as an option, it was receiving strong interest from potential buyers.

A source was reported as saying: "The mandate for Ak Gida encompasses both a public offering and a sale to strategic investors. There is strong demand for the company from domestic and international strategic and financial investors.

"The public offering process is continuing in tandem with this. Whichever is assessed as being more attractive for the company will be the preferred path."

It is being expected that following the non-binding bids that the company received last week, it will begin talks on shortlisting investors next week.

Another source revealed that while one interested company was from the Gulf region, another was from Europe.

Reuters quoted this source as saying: "Looking at the bids which have been received, the valuation of Ak Gida will be at a level above YTL2.5bn ($951m)."