Regions

Switzerland's food giant Nestle SA is selling its shares in Givaudan SA to institutional investors. As of yesterday's closing price, the said shares are worth USD1.27 billion, according to Bloomberg.

In a statement on its company website, Nestle said it plans to divest all of its 926,562 shares in the world's largest flavorings maker. Nestle had acquired the said stake in 2002 when Givaudan purchased Nestle's food-ingredient business for CHF750 million (USD450 million at the time) in cash and shares, the report detailed.

Nestle said in a statement, "Nestle has been very satisfied with its holding but believes now is the appropriate time to divest."

According to data gathered by Bloomberg, Nestle was the second-largest holder of Givaudan shares with a 10% stake as of December 21. Goldman Sachs Group Inc is managing the stake sale, the report said.

Nestle is currently headquartered in Vevey, Switzerland. Last month, the food group sold a large portion of its Jenny Craig diet business to North Castle Partners. Chief Executive Officer Paul Bulcke said the firm is looking to sell some of its underperforming businesses, Bloomberg reported.