Saudi Agricultural and Livestock Investment Company (SALIC) has acquired a 9.22 percent stake in packaged foods and staples company LT Foods. Also, SALIC, a wholly-owned subsidiary of the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia, will acquire a 1.33 percent equity stake through a secondary share purchase from the Promoters Group.
So on the conclusion of this transaction, SALIC will hold a 9.22 percent equity stake in LT Foods. The company’s promoters will retain a 51 percent stake in the company. 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 support future growth plans, especially in the Middle East and Saudi Arabia region.
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,” he said.
In addition, SALIC will acquire a 1.33 percent equity stake through a secondary share purchase from the promoter group. After the completion of this transaction, SALIC will hold a 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 a 29.52 percent 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 a 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 and give LT Foods significant access to a large market.