CCI approves SALIC’s equity buy in LT Foods

The Competition Commission of India (CCI) has given its nod for Saudi Agricultural and Livestock Investment Company (SALIC), through its arm SALIC International Corporation, to acquire certain equity stake in LT Foods, which is known for brands such as Daawat and Royal.

In November last year, it was announced that Saudi Arabia’s SALIC would acquire 9.22 per cent stake in LT Foods through primary and secondary investments of ₹455.5 crore.

SALIC is a Saudi joint stock company owned by the Public Investment Fund of the Kingdom of Saudi Arabia. It is an investment company with holdings in various international companies specialised in the fields of agriculture and trading of food commodities, both in Saudi Arabia and internationally. SALIC’s agri-business is focused on farming and procurement, as well as importing commodities into the Kingdom of Saudi Arabia.

SALIC has been an investor in LT Foods’ subsidiary Daawat Foods since 2020. In November 2022, the board of directors of LT Foods approved the preferential issuance of equity shares for 7.89 per cent equity stake in LT Foods to SALIC at ₹142.23 per share. In addition, SALIC will acquire 1.33 per cent equity stake through a secondary share purchase from the promoters’ group, LT Foods added. On completion of the transaction, SALIC will hold 9.22 per cent stake in LT Foods, while the promoters will continue to hold the majority equity stake of 51 per cent, it added.

Stake in Daawat Foods

Meanwhile, in a related party transaction, LT Foods will use ₹175.8 crore from the above proceeds to purchase SALIC’s entire stake of 29.52 per cent in its subsidiary, Daawat Foods Ltd. SALIC acquired this stake in February 2020 through its subsidiary. “Post-completion of the transaction, LT Foods will hold 100 per cent equity stake in Daawat Food,” the company had added in its November 2022 announcement

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Saudi Arabia’s SALIC to acquire 9.22 per cent in LT Foods