KUALA LUMPUR (Feb 19): Nestlé (Malaysia) Bhd (KL:NESTLE) said on Thursday that it is exploring a potential sale of its ice cream business to UK-based Froneri.
In a filing with Bursa Malaysia, the group said the exercise will entail due diligence, engagement with relevant local stakeholders and compliance with all applicable legal and regulatory requirements.
It will announce any material development in due course.
The initiative follows Nestlé SA’s disclosure that it is in advanced negotiations to divest the remainder of its global ice cream operations to Froneri.
Established in 2016 as a joint venture between Nestlé SA and private equity firm PAI Partners, Froneri combined Nestlé’s European ice cream businesses across 20 countries with PAI-owned R&R, creating one of the world’s largest ice cream companies. Nestlé Malaysia’s ice cream business was not included in that original scope.
The first deal between Nestlé SA and Froneri was struck in 2019, when Nestlé sold its US ice cream business for US$4 billion (RM15.6 billion) as part of a broader portfolio, reshaping to focus on higher-growth segments such as pet care, coffee and nutrition.
The transaction strengthened Froneri’s global presence while allowing Nestlé SA to streamline its operations.
At Thursday’s closing bell, shares of Nestlé Malaysia climbed 20 sen or 0.18% to RM109.50. This values the group at RM25.68 billion.