Rice exporter Kohinoor Foods (KFL) today said the shareholders of the company had approved its joint venture (JV) with US-based spice maker McCormick.
Earlier on June 2, KFL had said it would enter into a JV — Kohinoor Speciality Foods India — with McCormick, which will invest $115 million (about Rs 516 crore) for 85% stake in the JV for transfer of certain trademarks and non-compete undertakings from KFL and its promoters.
The balance of 15% stake would be with KFL.
KFL in a filing to the Bombay Stock Exchange (BSE) said, "The members of the company, by way of postal ballot, have passed with requisite majority to convey, transfer, assign, deliver or otherwise dispose of the business together with all the assets and liabilities."
The agreement also includes all employees, contracts, licences, agreements etc, as a going concern on a slump sale basis, the filing added.
Shares of the company today closed at Rs 50.75, down by 2.59% for its previous close on the BSE.
