October 29, 2019 / 11:21 AM / 4 months ago

UPDATE 1-Italian food group Newlat targets 200 mln euro acquisition in 2020

(Recasts to add comments, details)

By Francesca Landini and Elisa Anzolin

MILAN, Oct 29 (Reuters) - Italian food group Newlat plans a 200 million euro ($222 million) acquisition next year after its shares started trading on the Milan bourse on Tuesday, Chairman and top investor Angelo Mastrolia said.

Mastrolia said he was open to reducing his 65% stake to allow the owner of pasta brand Delverde to grow through acquisitions.

"We plan to turn our group into a hub that will group together different food brands and companies," Mastrolia said.

"Under the project we are open to reducing our stake as we merge with other companies and bring onboard new investors."

Newlat built its current portfolio, which includes also dairy brand Giglio and gluten-free line Gudo, with a string of acquisitions over the past 15 years.

The group also manufactures Buitoni products under a licensing deal with Nestle.

The food group raised 70 million euros through its share sale in a challenging market which forced two other Italian companies to scrap their IPO plans. Newlat cut the size of the share offer and extended its deadline.

By 1050 GMT shares in Newlat were flat at 5.8 euros a share, the IPO price which was set at the bottom of an indicative range.

Equita SIM, HSBC and Societè Generale acted as global coordinators for Newlat's share sale. ($1 = 0.9026 euros) (Editing by Louise Heavens)

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