Saudi Agricultural & Livestock Investment Company (Salic) said it has acquired a stake in Daawat Foods Limited (a subsidiary of LT Foods) through its subsidiary United Farmers Investment Company.
The transaction in DFL entails acquisition of 29.81% stake of India Agri Business Fund, sponsored by Rabobank and 0.1% stake of Real Trust, by United Farmers Investment Company for $17.23 million, said a statement from the Saudi firm.
According to Salic, the deal will not have any impact on the shareholding of LT Foods Limited, as it has been carried out in its subsidiary company.
Further, there is no change in stake owned by LT Foods Limited in its subsidiary DFL. LT Foods will continue to hold the balance stake of 70.09%, it stated.
On the strategic buy, LT Foods Managing Director & CEO Ashwani Kumar Arora said: "It gives us lot of satisfaction to provide a rewarding exit to the Rabo Fund which has been a partner with us for close to 10 years and have added to our growth with its immense knowledge of this sector. It is also a matter of pride for us that this exit by them brings us a new strategic partner."
"Partnership with Salic will help us to open up and create new opportunities for business in the Middle East besides strengthening our presence there. We also feel that this partnership shall help the Saudi firm strengthen and make supply chain more efficient to and in the region," he added.-TradeArabia News Service