LT Foods advanced 2.15% to Rs 106.90 after the Competition Commission of India approved the acquisition of certain equity share capital of the company by Riyadh-based SALIC International Investment Corp.
SALIC International Investment Corporation (SIIC) is an unlisted limited liability company based in Riyadh, Kingdom of Saudi Arabia. It is fully owned and controlled by Saudi Agricultural and Livestock Investment Company (SALIC).
SALIC is an investment company with holdings in various international companies specialized in the fields of agriculture and trading of food commodities both in Saudi Arabia and internationally. SALIC's agri-business is focused on farming and procurement as well as importing commodities into the Kingdom of Saudi Arabia.
In November last year, the board of LT Foods approved the preferential issuance of 27,408,164 equity shares, i.e. 7.89% equity stake in LT Foods, at Rs. 142.23 per share to SALIC.
In addition, SALIC will acquire 1.33% equity stake through a secondary share purchase from the Promoters Group. Post completion of this transaction, SALIC will hold 9.22% equity stake in LT Foods. The Promoters of the company will continue to hold the majority equity stake of 51%.
LT Foods had said that this transaction would reflect a successful collaboration and partnership between LT Foods and SALIC as the equity injection would accelerate LT Foods' organic and inorganic expansion plans across business segments, give a boost to its future growth plans specifically in the Middle East and Saudi Arabia region and fortify its position as one of the leading players in the industry.
On the other hand, it would enable SALIC to have greater exposure to the Specialty Rice sector and secure larger quantities of Specialty Basmati Rice to Kingdom of Saudi Arabia.
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In a statement release yesterday, the competition regulator said: Commission approves acquisition of certain equity share capital of LT Foods Limited by SALIC International Investment Corporation under Section 31(1) of the Competition Act, 2002.
LT Foods is a leading player in the specialty rice and rice food products and organic business across the globe, exporting produts in more than 60 countries. The company portfolio includes a range of brands that include Daawat, Royal and other regional leading brands.
The company reported 30% rise in net profit to Rs 100 crore on a 31% increase in total revenue to Rs 1,792 crore in Q3 FY23 over Q3 FY22.
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