Matco Foods corn subsidiary is on the block. The PSX-listed food processor has received a non-binding offer from IGI Investments for its entire 100 per cent stake in Matco Corn Products, the company disclosed to the Pakistan Stock Exchange on October 15.
The proposed deal would see IGI Investments, itself a wholly owned subsidiary of IGI Holdings, acquire the whole of Matco Foods’ shareholding in the corn-products unit.
Board authorises negotiations
Matco Foods’ board of directors considered the offer on October 15 and authorised management to enter into discussions and negotiations with the potential acquirer. According to the disclosure, management has been directed to bring its final determinations, including the proposed terms and conditions, back to the board for formal review and approval.
The company has appointed Arif Habib Limited as its sell-side adviser for the proposed transaction and said further disclosures would follow in line with applicable laws as the deal progresses.
The offer covers 100 per cent of the issued and paid-up ordinary share capital of Matco Corn Products (Private) Limited.
A subsidiary created barely a year ago
What makes the proposed sale notable is how recently Matco Corn Products was carved out of the parent. The unit was created through a court-sanctioned corporate restructuring: the Sindh High Court at Karachi sanctioned the Scheme of Arrangement in an order dated December 8, 2025, merging Matco Foods’ corn starch division into the wholly owned subsidiary with effect from July 1, 2025, as recorded in the company’s PSX disclosure filing.
At the time, the company said the reorganisation would allow sharper operational focus and open the door to new investment opportunities. The IGI offer suggests that logic is now playing out, with the carved-out unit attracting a buyer less than 16 months after the scheme took effect.
The subsidiary has been performing. Matco Foods’ FY26 annual report summary shows the corn wet-milling facility running at about 88 per cent capacity utilisation, prioritising high-margin local supply contracts, with a captive solar power installation being commissioned to cut energy costs.
Why the Matco Foods corn subsidiary sale matters
IGI Investments is the investment arm of IGI Holdings, placing the potential buyer inside one of Pakistan’s established conglomerate groups. For IGI, acquiring a running corn wet-milling plant at near-full utilisation offers an entry into agri-processing without the construction risk of a greenfield project.
For Matco Foods, a sale would crystallise the value of the restructuring and free up capital for its core rice and consumer businesses. The company, incorporated in Karachi in April 1990 and listed on the PSX in February 2018, processes and exports basmati and other rice varieties alongside its flagship Falak brand products sold in more than 60 countries.
The company’s broader FY26 showing was solid: consolidated net profit rose 36.2 per cent to Rs564.85 million, and VIS Credit Rating Company upgraded its entity ratings to A-/A2 with a stable outlook in January 2026.
A busy day for Pakistan’s capital markets
The disclosure landed on an active day for the exchange. Investors tracking the market can follow the latest moves through our coverage, including how the KSE-100 slipped below 165,000 on nervous selling and the recent 400-point buying rally.
For readers new to equities, our beginner’s guide to investing in the Pakistan Stock Exchange explains how disclosures like this one reach the market.
The deal also fits a wider corporate trend: Pakistan’s top textile firms posted Rs52 billion in profit in FY26, and policymakers are pushing the shift from aid to trade and investment as the country eyes a double-B credit rating.
What happens next
The offer is non-binding, so there is no done deal yet. The next milestone will be management’s final recommendations to the board, followed by any agreed terms and the regulatory disclosures that follow. If negotiations advance, shareholders will want to see the price and how the proceeds are deployed.
FAQ
What is Matco Foods selling?
Matco Foods has received a non-binding offer for its entire 100 per cent stake in Matco Corn Products (Private) Limited, its corn-products subsidiary.
Who is buying Matco’s corn subsidiary?
IGI Investments (Private) Limited, a wholly owned subsidiary of IGI Holdings, made the offer. The board authorised management to negotiate.
When was Matco Corn Products created?
The subsidiary was carved out of Matco Foods through a Sindh High Court-sanctioned restructuring that took effect on July 1, 2025.
Who is advising Matco Foods on the sale?
Arif Habib Limited has been appointed as the sell-side adviser for the proposed transaction.
