 "LT Foods surges on acquisition of HUL’s rice business")
LT Foods has rallied 17% to Rs 260 on the BSE after the company announced that it has entered into an agreement to acquire the branded rice business of Hindustan Unilever (HUL).
“The acquisition includes the acquisition of Brands Gold Seal Indus Valley and Rozana which have been in business for some decades,” LT Foods, owner of Daawat, said in a statement.
The acquisition will strengthen our position in the middle eastern market, as it gives markets of Qatar, Oman, and Bahrain UAE and Kuwait in addition to strengthening our existing presence in Saudi Arabia, UAE and Kuwait," it added.
The company said the total cost of the acquisition is Rs 25 crore which is subject to closing adjustments and Competition Commission of India approval. The said acquisition will be funded by debt and internal accruals.
At 10:42 AM, the stock was up 12% at Rs 250 on the BSE. The trading volumes on the counter multiple-folds with a combined 347,836 shares changed hands on the BSE and NSE.
HUL on the other hand was down 1% at Rs 842 after hitting low of Rs 839 on the BSE.
“The acquisition includes the acquisition of Brands Gold Seal Indus Valley and Rozana which have been in business for some decades,” LT Foods, owner of Daawat, said in a statement.
The acquisition will strengthen our position in the middle eastern market, as it gives markets of Qatar, Oman, and Bahrain UAE and Kuwait in addition to strengthening our existing presence in Saudi Arabia, UAE and Kuwait," it added.
The company said the total cost of the acquisition is Rs 25 crore which is subject to closing adjustments and Competition Commission of India approval. The said acquisition will be funded by debt and internal accruals.
At 10:42 AM, the stock was up 12% at Rs 250 on the BSE. The trading volumes on the counter multiple-folds with a combined 347,836 shares changed hands on the BSE and NSE.
HUL on the other hand was down 1% at Rs 842 after hitting low of Rs 839 on the BSE.
