BOB Ingham's adviser, Investec Bank Australia, has left no stone unturned in the sale process for one of Australia's most famous poultry producers which the 81-year-old BRW rich-lister put up for sale in the middle of last month.
The Australian Financial Review reports that the information memorandum for the business, which sole stakeholder Mr Ingham hopes will fetch as much as $1.5 billion, will be sent out on September 10.
Indicative bids are to be submitted by mid-October and it is hoped a deal will emerge before Christmas.
However, those looking at the business have expressed concern with regards to Inghams No 1 competitor Baiada, a family-owned entity which is almost entirely debt-free and the primary supplier to Coles.
With Inghams generating about $700 million of its sales from Woolworths, the new owner could certainly feel the heat if Baiada was to continue pushing down prices.
And as wheat, corn and soy bean prices rocket due to drought in the United States, some quarters of the market are worried neither Inghams nor Baiada has sufficiently hedged the feedstock issue.
Mr Ingham bought the stake from the family of his late brother Jack. The key price point which would provide a floor for the amount paid will be how much Mr Ingham paid for Jack's stake in 2003.
In terms of sponsors, Affinity Equity Partners, owner of Kiwi poultry leader Tegel Foods, has shown interest alongside Warburg Pincus. Pacific Equity Partners, Bain Capital and KKR & Co are also expected to take an IM.
Offshore players such as Turkey's CP Group and US giants JBS and Tyson Foods are also in the mix.
Australian Financial Review
Source: Argentine Beef Packers S.A.
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