Nestle is selling its 10% stake in Swiss fragrance and flavour maker Givaudan in an effort to narrow its focus on core operations and clean up its balance sheet.

Traders said the sale managed by Goldman Sachs through an accelerated book building was being offered at a price range of 1,150-1,170 Swiss francs a share.

This values the entire stake at as much as 1.08 billion Swiss francs ($1.20 billion).

The maker of KitKat chocolate bars and Nescafe coffee had bought the stake in Givaudan, one of its suppliers, 11 years ago when it sold Givaudan its food ingredient company FIS for a combination of cash and stock worth 750 million francs.

The move was also aimed at helping prevent Givaudan from being taken over.

"Nestlé has been very satisfied with its holding but believes now is the appropriate time to divest," the Swiss group said in a statement.

Last month, Nestle sold the bulk of its Jenny Craig weight-loss business to a US private equity firm for an undisclosed sum. It is now looking for a buyer for its PowerBar energy bars, according to people familiar with the matter. 

There has also been market speculation that Nestle might part with its 29.5% stake in French cosmetics group L'Oreal when restrictions on selling it end next April.