Drinks and snacks group C&C said today it was reviewing of its Tayto crisps business but that there was no certainty it would lead to any transaction.
C&C, whose other brands include Club soft drinks and Bulmers cider, was responding to speculation in the media that the Tayto was up for sale.
In a statement C&C said it had retained IBI Corporate Finance to assist it in the review, which was at an early stage.
The Irish Independentsaid today C&C planned to sell Tayto, with market sources estimating the unit's value at around €60 million.
It quoted food industry sources as saying the most likely buyer was Tayto in Northern Ireland, a separate company that owns the rights to the Tayto name in Northern Ireland and outside the Republic, and which recently bought British crisp maker Golden Wonder.
Another possibility was Irish snack firm Largo Foods, which owns Perri Crisps.
Paul Meade at NCB Stockbrokers said a sale of Tayto had been expected for some time. "It is the group's smallest profit contribution, so its disposal is positive and increases the group's focus on beverages and accelerates debt reduction and will have limited impact on earnings after interest costs are considered," he said in a note to investors.
C&C shares, which have risen 75 per cent over the past year, were up 0.9 per cent at €5.80 in Dublin by 9.20am.