Turkish flour maker Ulusoy Un eyes stake sale

Turkey’s Ulusoy Un, which has ramped up flour production in the face of the coronavirus outbreak, has mandated consulting firm Pragma to explore strategic partnerships including a possible stake sale, two sources close to the matter told Reuters Wednesday.

One of the sources said the company “might be valued at more than $100 million,” adding any stake sale would depend on the offer received.

Ulusoy Un and Pragma declined to comment.

In a later statement to the Public Disclosure Platform (KAP) Wednesday, the company confirmed the reports that it mandated Pragma to explore potential partnerships.

“Our Board of Directors has decided to postpone the announcement so that the relevant process does not adversely affect our investors and our company,” the statement read.

“In the next process, developments related to the subject will be shared with our investors and the public in accordance with the SPK (Capital Markets Board of Turkey) and other relevant legal regulations,” it added.

The Ulusoy family owns 75.7% of Ulusoy Un, which started processing wheat almost three decades ago. The other shares are traded on the Istanbul stock exchange, where they initially plunged along with global markets early last month.

But in recent weeks the stock jumped about 66% as more people have remained in their homes to stem the spread of the virus, raising the demand for flour. The company’s market cap is about TL 372 million (around $55 million).

Ulusoy Un recently said it is producing at full capacity and taking all necessary measures to ensure hygiene rules and standards. The source said that, before the coronavirus outbreak in Turkey, the company was producing at about 60% of its capacity.