Dubai: Jordan’s Nuqul Group is selling a 25 per cent stake in FINE Hygienic Holdings, one of the Middle East’s largest tissue and paper products manufacturers, in a deal that could be worth up to $200 million (Dh734 million), sources aware of the matter told Reuters.
Details of potential buyers were not available.
The transaction is the latest example of acquisition activity in the region’s consumer product industry, as buyers look to tap into the Middle East’s increasingly wealthy young population.
In addition, family-owned businesses are looking to offload stakes in assets to raise cash and, in some cases, bring in private equity or strategic shareholders to provide the expertise to expand.
The Nuqul Group, founded in 1952 by Elia Nuqul, who still serves as chairman, operates in 11 mainly Middle East and North African countries.
Nuqul did not immediately respond to a request for comment.
Nuqul has been talking to potential bidders for a number of months but has yet to secure a deal, three of the sources said, speaking on condition of anonymity as the information is not public.
However, the deal structure is said to be the main sticking point, as the 25 per cent holding gives potential buyers limited control of the business, which in turn restricts sell-on value, the three sources said.
