Swiss food giant Nestlé has unveiled plans to sell its 10% stake in Swiss flavorings maker Givaudan in a deal worth over $1bn, as part of its efforts to focus more on its core food businesses.
The company has launched the sale of its total shareholding by an institutional private placement to investors through an accelerated bookbuilding transaction.
The process is currently underway and the results of the placement will be announced after it has been completed.
Nestlé has appointed Goldman Sachs to manage the placement process.
The company stated that it has been very satisfied with its holding, but believes now is the appropriate time to divest.
The Swiss firm acquired the stake in Givaudan as part of a sale of its food ingredient unit Food Ingredients Specialities (FIS) in 2002. It holds 926,562 Givaudan shares valued at CHF1.14bn ($1.28bn).
In November, Nestlé signed a deal with US-based private equity firm North Castle Partners to sell its Jenny Craig businesses in North America and Oceania.
Earlier this year, the company said that it was looking to review its portfolio of 8,000 brands, in a move to sell certain underperforming businesses.
Nestlé is a leading nutrition, health and wellness company, with more than 330,000 staff.
