Australia's leading poultry processor Inghams Enterprises has been put up for sale by its only shareholder Bob Ingham,in a deal which is expected to attract food companies as well as private equity firms.
Investec Bank has been appointed to manage the sale,which is expected to fetch A$1.60bn($1.64bn).
Ingham said that he has decided to sell the business after long consideration.
Potential buyers of the business include private equity firms as well as food companies such as Thailand's CP Group,Brazilian beef producer JBS,and a consortium from China.
However,a sale to main competitor Baiada is unlikely to be cleared by the Australian Competition and Consumer Commission(ACCC).
The sale process will be closely evaluated by ACCC,as both Inghams and Baiada,whose main customers include Coles and Woolworths respectively,control 75%of the 834,000t-a-year chicken meat market in Australia.
An ACCC spokesman said the Commission is aware of the possible sale of Inghams and is currently evaluating the developments and if a merger review is required,details will be posted on the public register on the website.
For the sale process,which is expected to take place over several months,Investec will send information memorandums to potential investors in about two months,following which,the bank will allow access to the company's financial data so that the buyers would submit their bids.
Meanwhile,the everyday operations of Inghams will continue as usual under the direction of the CEO Kevin McBain and his team until a deal is finalised.
Inghams,which produces chicken and poultry products,operates across Australia and New Zealand,and has annual sales of A$2.1bn($2.14bn).
