Al Wafir fails to secure controlling stake as only 24.22% of shareholders tender shares, falling well short of the mandatory 50% threshold.
A high-profile attempt by Kuwait’s Al Wafir for Marketing Services to acquire a controlling stake in UAE-based dairy firm Unikai Foods has officially failed, after the bidder was unable to muster the necessary shareholder support.
Unikai Foods announced that Al Wafir’s voluntary conditional cash offer has lapsed, having secured valid acceptances for just 9.4 million shares—representing only 24.22 percent of the company’s total issued share capital. The offer, which closed on February 16, required a minimum acceptance of 50 percent plus one share to proceed under UAE takeover regulations.
The Kuwaiti company had launched the bid in January, offering Dh6.60 per share to acquire up to 51 percent of the Dubai-listed food manufacturer. At the time, the move was seen as a strategic play to gain a foothold in the UAE’s expanding food processing sector.
However, with Al Wafir holding no prior stake in Unikai and acquiring no shares outside the formal offer during the period, the bid fell significantly short of its goal.
No Deal, No Change
As a result of the failed transaction, Unikai Foods will continue to operate as an independent listed company with no alteration to its ownership structure. Shareholders who tendered their shares will not receive the cash consideration, and no shares will be transferred to the bidder.
The development marks a decisive moment for investor relations in the region. Market watchers suggest the weak response reflects either a lack of appetite for the Dh6.60 valuation, or a strong vote of confidence in Unikai’s standalone prospects.
“The message from shareholders is clear: either the price wasn’t right, or they believe the company’s future performance will outstrip what’s on the table,” said a Dubai-based financial analyst.
Sector Implications
For the UAE’s food and dairy sector, the collapse underscores the hurdles regional acquirers can face when pursuing listed companies without deep shareholder alignment. It also highlights the strategic value investors place on firms operating in the branded consumer staples space, particularly as regional demand for food security and local production intensifies.
While this particular bid has failed, industry observers note that Unikai—given its position in a growing market—may still attract future strategic interest. For now, however, the company remains firmly independent, and the failed offer serves as a benchmark for valuation sentiment in the sector.
