Petra Foods' sweet deal hits sour note

PETRA Foods' sweet deal to sell its cocoa ingredients business to Barry Callebaut for US$950 million - subject to adjustments at completion - appears to have hit a more sour note as the consumer confectionary group is now being asked by the buyer to assume a closing price reduction to the tune of US$98.3 million. When Petra announced in July that the sale was completed on June 30, the estimated sale proceeds was already cut to US$860 million because working capital delivered at completion was lower by about US$74 million.

Should Petra be compelled to accept the closing price reduction, it would mean a chunky 20 per cent slice off the original offer price when the d…