Abu Dhabi’s sovereign wealth fund bought into the owner of Haagen-Dazs ice creams last year. It may now get an opportunity to deepen that bet.
Swiss food giant Nestlé is weighing options to scale back its exposure to the ice cream sector, including a potential reduction of its holding in Froneri, the business it co-owns with private equity firm PAI Partners, according to a report by Bloomberg.
The Abu Dhabi Investment Authority emerged last year as a “significant minority co-investor” in Froneri as part of a €3.6 billion equity deal that reshaped the ownership structure around PAI’s roughly 50% stake.
Under the scenarios being discussed, Nestlé could sell a portion of its Froneri shares to another investor — potentially ADIA — or PAI could choose to increase its holding, Bloomberg reported, citing people familiar with the matter. Deliberations are ongoing and there’s no certainty of a deal.
