Saudi Agricultural and Livestock Investment Company (SALIC) will 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 has been an investor in LT Foods’ subsidiary Daawat Foods since 2020. LT Foods, which is known for brands such as Daawat and Royal, said the new partnership will give a boost to its future growth in the West Asia region.

“The Board of Directors of LT Foods, in its meeting today, approved the preferential issuance of equity shares for 7.89 per cent equity stake in LT Foods at ₹142.23 per share to SALIC. In addition, SALIC will acquire 1.33 per cent equity stake through a secondary share purchase from the promoters group,” the statement 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.

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 Foods Limited,” the company added.

Vijay Kumar Arora, Chairman, LT Foods, said, “Our 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. Together, we have developed a deep understanding of the needs of consumers in the Middle East related to food products and it will open doors for LT Foods to further strengthen its presence in this segment.”

LT Foods will also enter into a strategic supply and co-operation agreement with SALIC.

Sulaiman AlRumaih, Group CEO of SALIC, said, “The extension of our partnership with LT Foods is in line with SALIC’s strategy to contribute to the food security objectives. Our three-year-old investment in Daawat Foods Ltd, gave us an understanding of the management style of LT Foods, their market and business understanding. This gave us the confidence to increase our investment in LT Foods and build a strong strategic partnership with the company.”

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