Saudi Agricultural and Livestock Investment Company (SALIC) has Acquired 9.22 percent Stake in LT Foods
SALIC (Saudi Agricultural and Livestock Investment Company), which is a subsidiary of the PIF, has purchased 27,408,164 shares of LT Foods. The shares account for 7.89 per cent of equity in the company.
LT Foods Sold its 9.22 per cent Stake
In a stock exchange filing, LT Foods affirmed that the Saudi Agricultural and Livestock Investment Company had been issued a 7.89 per cent stake in the company, which holds a valuation of equity shares of 27,408,164.
It also added that SALIC are most likely headed towards the acquisition of 1.33 per cent equity in the company. It would be purchased from the Promoters Group through a secondary share purchase. Hence, that would make SALIC hold an equity stake of 9.22 per cent in the company.
The promoters of the company, as per LT Foods, would continue holding the majority share of the company, i.e., 51 per cent.
LT Foods are expected to take the 100 percent acquisition of its subsidiary, Daawat Foods Ltd.
LT Foods are expected to take the 100 percent acquisition of its subsidiary, Daawat Foods Ltd., from SALIC. For the unversed, SALIC purchased an equity stake of 29.52 per cent in Daawat Foods Ltd in February 2020. The transaction had been made through 'United Farmers Investment Company, a subsidiary of SALIC.
Reportedly, LT foods will purchase the stake (29.52 per cent) in Daawat Foods Ltd. again for USD 21.7 million (INR 175.8 crore). Upon the completion of the transaction, the equity stake of LT foods in its subsidiary will be 100 per cent.
LT Foods-SALIC Partnership Eyeing Various Collaborative Opportunities
SALIC and LT Foods are expected to enter a Strategic Supply and Cooperation Agreement. The agreement seems promising for both partnering organizations. On the one hand, Saudi Agricultural and Livestock Investment Company is expected to be anchored by LT Foods in order to tighten its clutch over the food security agenda. At the same time, SALIC is expected to give wider accessibility to the market significantly.
The Director of LT Foods and the Group CEO of SALIC are Thrilled with the Partnership.
The Chairman and Managing Director of LT Foods, Vijay Kumar Arora, is quite delighted and excited about this partnership with the Saudi Agricultural and Livestock Investment Company. As per him, the partnership is beyond the economic and investment fulcrum between the organization. He considers the tripling of investment of SALIC as a sign of confidence between the two partners.
LT Foods have been growing phenomenally compared to its competitors in the market.
Through this partnership, he sees tremendous opportunities for colossal exposure to the Middle Eastern market. Adding to that, he also talked about how the companies have understood the consumer trends, demands and market dynamics in the Middle East.
The transactions pertaining to the partnership are highly subject to approvals, regulatory proceedings, and regulatory filings.
Similarly, the Group CEO of the Saudi Agricultural and Livestock Investment Company is extremely sanguine with the partnership and is excited about what the future holds for SALIC group.
He considers the partnership would help brace SALIC's objectives considering the company's food security agenda.
According to Procurement Resource, the Saudi Agricultural and Livestock Investment Company (SALIC) and LT Foods would be moved positively through this partnership. The partnership would not only revive the current standpoints of the organization, but it would also bolster the future endeavours of the organization.
The exposure to LT Foods would be revived in terms of the Middle East market, whilst the food security agenda of the Saudi Agricultural and Livestock Investment Company would reach a notch higher.