KUALA LUMPUR, Feb 20 (Bernama) -- Nestle (Malaysia) Bhd emerged as the top gainer in early trade on Friday following plans to explore the potential sale of its ice cream business to Froneri, a global ice cream firm active in more than 20 countries.
At 9.43 am, Nestle Malaysia shares rose 40 sen to RM109.90 on 300 shares traded.
In a filing with Bursa Malaysia yesterday, the company said the plan was initiated after its ultimate holding company, Nestle SA, entered advanced negotiations to sell the remainder of its global ice cream business to Froneri.
“The process will involve thorough due diligence, comprehensive engagement with relevant local stakeholders and strict adherence to all applicable legal, regulatory and governance requirements,” the filing said.
Meanwhile, MBSB Investment Bank Bhd described the move as strategically aligned with Nestle’s global shift towards higher-growth, structurally resilient categories.
In a note today, the bank said Nestle Malaysia continues to benefit from strong brand equity, entrenched distribution networks and stable domestic demand.
“Should the divestment proceed, a sharper category focus could support earnings quality and margin sustainability over the medium term, although execution details and transaction terms will ultimately determine the financial impact,” it added.
The bank maintained a ‘sell’ call on Nestle Malaysia with an unchanged target price of RM94.50.
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