SALIC picks 9.22% equity stake in LT Foods with investment of Rs 455.5 Cr

LT Foods enters into a strategic partnership with Saudi Agricultural and Livestock Investment Company (SALIC)

The Board of Directors of Gurugram-based LT Foods has approved the preferential issuance of 27,408,164 equity shares, i.e. 7.89% equity stake in LT Foods, at Rs 142.23 per share to SALIC, a Saudi Joint Stock Company that is owned by the Public Investment Fund of the Kingdom of Saudi Arabia.

In addition, SALIC will acquire 1.33% 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.

Further, the company will also enter into a strategic supply & cooperation agreement with SALIC to further support SALIC in its food security agenda along with giving LT Foods a significant access to a large market.

Image credit- shutterstock

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