African food and drink group, Promasidor Holdings Limited, is considering a sale for $1.5 billion, according to Bloomberg sources.

The group has not publicly disclosed its intentions to be acquired, however, persons familiar with the situation made this known.

According to the anonymous persons, who asked not to be identified because they were discussing proprietary information, the company is working with a consultant to evaluate interest from potential purchasers. Promasidor might fetch $1.5 billion in a sale.

In the light of this, the process is still in its early stages, and Promasidor may opt not to sell if interest is low, by the account of the anonymous persons.

Ajinomoto, a Japanese seasoning giant company, holds a significant interest in Promasidor Ltd and has made no move to liquidate its stakes. In 2016, Ajinomoto acquired a third of the business, that is, a 33.33% stake in Promasidor.

Nairametrics reached out to representatives of Promasidor who declined to make comment.

This comes after a May analysis by Oxford Economics Africa revealed that rising worldwide food prices would impact Africa’s economies the hardest and may spark societal unrest if governments fail to soften the shock.

In addition, Moody’s Investors Service, the bond credit rating business of Moody’s Corporation, has said that due to the persistent global food and energy price shock, it forecasts increasing social and political risks in the Middle East and Africa over the next 18 months.

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