Saudi Agricultural and Livestock Investment Company (SALIC), a wholly-owned subsidiary of the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia, has acquired 9.22 per cent stake in packaged foods and staples company LT Foods.
“In addition, SALIC will acquire 1.33 per cent equity stake through a secondary share purchase from the Promoters Group. Post completion of this transaction, SALIC will hold 9.22 per cent equity stake in LT Foods. The Promoters of the company will continue to hold the majority equity stake of 51%,” LT Foods said in a stock exchange filing.
This transaction will accelerate organic and inorganic expansion of LT Foods, which makes Daawat and Royal basmati rice, staples and snacks, across business segments and future growth plans specially in the Middle East and Saudi Arabia region, the company said in a detailed statement.
LT Foods chairman Vijay Kumar Arora said the partnership with SALIC is strategic in nature and goes beyond financial investment. “The tripling of investment in LT Foods by SALIC is an expression of their confidence in our ability to grow faster than the market,” Arora said.
In addition, SALIC will acquire a 1.33 per cent 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%.
In a related transaction, LT Foods will purchase 29.52% equity stake in its subsidiary, Daawat Foods, from SALIC which was acquired in February 2020 through its subsidiary United Farmers Investment Company. LT Foods will acquire this stake for Rs 175.8 crore and post completion of the transaction it will hold 100% equity stake in Daawat Foods, the company announced.
Further, the company will also enter into a strategic supply and cooperation agreement with SALIC to further support SALIC in its food security agenda along with giving LT Foods significant access to a large market.
“The relevant transactions are subject to necessary regulatory approvals,” the company said.