Al Wafir fails to secure minimum 50% stake after only 24% of shareholders tender shares, leaving the UAE dairy firm firmly independent.
A proposed takeover of UAE-based food producer Unikai Foods by Kuwait’s Al Wafir for Marketing Services has officially collapsed after the bidder failed to secure the necessary shareholder support, reinforcing the critical role of investor sentiment in regional M&A activity.
Unikai Foods announced on Wednesday that the voluntary conditional cash offer from Al Wafir has lapsed after valid acceptances were received for only 9.4 million shares, representing just 24.22 percent of the company’s total issued share capital. The bid, which offered shareholders Dh6.60 per share, was conditional on the Kuwaiti company acquiring a minimum of 50 percent plus one share.
Launched in January, the offer aimed to secure Al Wafir a controlling stake of up to 51 percent in the Dubai-listed dairy manufacturer. However, by the February 16 deadline, the response fell well short of the mandatory threshold required under UAE Securities and Commodities Authority (SCA) takeover rules.
Al Wafir, which held no shares in Unikai prior to the bid and did not acquire any outside the formal offer during the period, was unable to bridge the gap. Consequently, the transaction has been formally cancelled, and no shares will be transferred.
A Vote of Confidence in Independence
The collapse means Unikai Foods will continue to operate as an independent listed entity with no change in its ownership structure. Shareholders who tendered their shares will not receive the cash consideration, and the status quo remains.
Market observers suggest the weak response signals either a lack of appetite among shareholders for the Dh6.60 per share valuation, or a strong vote of confidence in the company’s long-term prospects as a standalone player in the UAE’s growing food sector.
“The failure of this bid highlights a critical dynamic in regional markets: you cannot acquire a listed company without strong shareholder alignment,” said a market analyst. “Either the price wasn’t right, or investors believe Unikai’s future value exceeds what was on the table.”
Sector Implications
For the UAE’s food and dairy sector, the aborted takeover underscores the challenges regional buyers may face when attempting to secure controlling stakes in publicly listed companies. It also reflects the strategic value shareholders place on firms operating in the branded consumer staples space, particularly as regional demand for food security and local production rises.
While this attempt has ended, industry watchers note that Unikai—given its position in the UAE’s expanding food processing landscape—may still attract strategic interest from other players in the future. For now, however, the company remains firmly under its current ownership, with the failed bid serving as a benchmark for valuation and investor sentiment in the sector.
United Arab Emirates Dirham Exchange Rate
