Ajinomoto considers selling soy sauce maker Amoy Food

Japanese seasoning company Ajinomoto is considering divesting its Amoy Food firm, which is primarily engaged in the production of soy sauce.

Citing individuals with knowledge of the matter, Bloomberg exclusively reported that the Japanese firm has been working with advisers to understand prospective buyers’ interest in the soy sauce manufacturing company.

Ajinomoto originally acquired Amoy Food in Hong Kong from Groupe Danone subsidiary Danone Asia for HK$1.8bn ($235m) in January 2006.

Ajinomoto subsequently posted an impairment loss of $122m on the goodwill of Amoy Food in 2008.

Amoy initially commenced condiment production in 1908 and the sale of the 100-year-old company could fetch almost $70m to $80m, according to Bloomberg’s sources.

The development comes as private equity firm Unitas Capital is also contemplating a potential divestment of Chinese condiment producer Jiahao Foods for $600m.

Jiahao produces chicken powder, soy sauce and wasabi.

The Jiahao divestment plans have reportedly caught the attention of potential investors such as Hormel Foods, sources told the publication.

The sale of Amoy is said to be still at the nascent stage and there is still a high chance that Ajinomoto might cancel its plans for divestment, the informants added.

Amoy previously changed stakeholders several times prior to Danone’s acquisition of the company in 1991, having previously been owned by Pillsbury, Hang Lung Development and Sime Darby Bhd.

Earlier this week, the Japanese firm announced plans to open the Client Innovation Centre (CIC) next month at its Kawasaki Administration & Coordination Office in order to promote open and linked innovation.

Ajinomoto aims use information and communications technology (ICT) to co-create new ventures with business partners to help resolve social issues in the areas of health and well-being, food resources and global sustainability.