Britain's Howard Investments Limited plans to sell over 10 million shares in Associated British Foods PLC (ABF), the company said on Friday.
The company, a wholly owned subsidiary of Wittington Investments Limited, said it has entered into an agreement to sell about 10.3 million ordinary shares - equating to around 1.4% of the issued share capital - in ABF to institutional investors through an accelerated bookbuild process, with each ordinary share priced at 2,550 pence, generating gross proceeds of about £262 million ($333 million).
Following completion of the placing, the combined shareholding of Wittington and Howard in ABF is expected to be about 56.1%.
Wittington has agreed that neither it nor Howard will sell any further shares in ABF for the remainder of ABF's current financial year ending September 14 without the consent of UBS AG, London Branch.
Wittington is committed to maintaining a majority stake in ABF.