Rei Agro Ltd, one of the country’s top basmati rice processing companies, may acquire a majority stake in a Singapore-based firm by merging operations of an overseas arm into the target company, as per a stock market disclosure. It did not disclose the name of the target firm.
"We are exploring the possibility of acquiring the majority stake of a Singapore-based listed company through the transfer of agri business of one of our wholly owned foreign subsidiaries. As a result, our overseas subsidiaries may undergo a reorganisation of their business without any changes in Rei's ownership of the existing wholly-owned foreign subsidiaries," the company said in the filing.
Established in 1994, Rei Agro offers a range of basmati rice brands including Raindrops ELG (extra long grain), Raindrops Gold Supreme, Raindrops Gold Royal, Raindrops Gold Super, Raindrops Supreme, Raindrops Royal, Raindrops Select, Raindrops Super, Raindrops Popular, Raindrops Daily and Raindrops Rozana. The company offers its products across premium, mid-range and economy segments.
A few years ago, it demerged its retail business into a separate entity called REI Six Ten Retail Ltd to focus on its core business.
Rei Agro is backed by Wellington Management Company and Clearwater Capital Partners among other institutional investors.
(Edited by Joby Puthuparampil Johnson)