Tate & Lyle PLC (LON:TATE) confirmed media speculation it is thinking of selling its Primary Products businesses.
The food ingredients company said it is contemplating selling a controlling stake in the Primary Products businesses to a new long-term financial partner, leaving the company focused on its Food & Beverage Solutions.
“Tate & Lyle continues to successfully execute its strategy and remains confident in the future growth prospects of the company; however, the board believes that if a transaction of this nature was completed it would enable Tate & Lyle and the new business to focus their respective strategies and capital allocation priorities and create the opportunity for enhanced shareholder value,” the company’s stock market statement said.
Tate & Lyle said discussions with the financial partner are still at an early stage and there is no guarantee a sale will be agreed.