Abu-Dhabi based Al Dahra International Investments LLC has completed its deal with India-based rice exporter Kohinoor Foods Ltd, buying little over 7 million shares or 20 per cent stake for Rs 112.77 crore, a statement issued by Kohinoor Foods said.
“The company (Kohinoor Foods) has allotted 70,48,306 equity shares at Rs 160 per share at a premium of Rs 150 each share to Al Dahra International Investments LLC, UAE, after receiving Rs 112.77 crore," the company said in the statement filed with the Bombay Stock Exchange.
Also, Al Dahra’s Khedaim Abdulla Saeed Faris Alderei has been roped in as an additional director of the Indian food company with immediate effect to the next annual general meeting. The deal has already been approved by Kohinoor Foods’ board and the Securities Exchange Board of India, the statement said.
Earlier, it was said that Al Dahra International, a subsidiary of Al Dahra Holdings, will pick up 20 per cent stake on fully diluted basis with an option to acquire another 4.99 per cent stake within six months from the date of completion of investments.
Al Dahra Holding is into production and distribution of products such as wheat, potatoes, rice, corn, olives, dates and grapes. So far, Al Dahra International has made investments in several countries, including UAE, the US, Spain, Serbia, Egypt and South Africa.
Al Dahra and Kohinoor Foods had signed a pact in July this year. As per the agreement, Kohinoor Foods also decided to create a joint venture with the Abu-Dhabi based company to develop and manage a rice factory in Abu Dhabi which would convert brown rice into white rice.
Kohinoor is said to have a stake of 20 per cent in the proposed JV namely ‘Al Dahra Kohinoor’.
This facility will have a capacity of 60,000 million tonnes (MT) scalable to 100,000 MT, apart from a storage facility of 30,000 MT. The JV will buy minimum 25,000 MT of basmati rice every year from Kohinoor Foods, which would be the exclusive supplier from India.
As on September 30, 2013, the promoters’ share holding in Kohinoor Foods was 58.31 per cent, while remaining 41.69 per cent is held by public, according to data available with the stock exchanges.
(Edited by Joby Puthuparampil Johnson)