Packaged snack foods player Agro Tech Foods saw its shares jump over six percent in trade on August 28 after the firm announced Conagra Brands, one of North America's leading branded food companies, has ceased to be part of the promoter entity.
Conagra Brands has fully exited its stake in the company, leaving funds managed by Convergent Finance and private equity firm Samara Capital as the sole shareholders of Agro Tech Foods' promoter entity.
At 1 pm, Agro Tech Foods' stock price was quoting Rs 880.3 on the NSE, higher by 5.8 percent compared to the previous close.
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Conagra became a controlling shareholder of Agro Tech Foods in 2011, after which Agro Tech Foods accelerated the growth of its food portfolio, including ACT II popcorn and Sundrop foods. These two iconic brands are leaders in their respective categories, and offer a basket of products for both in-home and out-of-home consumption.
However, Agro Tech Foods will continue to use Conagra Foods' ACT II branding. "Conagra has agreed to continue the perpetual and exclusive license for the ACT II brand in India with ATFL and ATFL will exclusively continue to use the ACT II brand in India," said the firm in an exchange filing.
On February 29, it was announced that Convergent Finance and Samara Capital will acquire a 51.8 percent stake in the firm. Conagra Brands said that this transaction is the latest step in Conagra's strategy to continuously reshape its portfolio to maximize shareholder value.
Agro Tech Foods, which is listed on Indian stock exchanges, has marquee investors as its shareholders, including Rakesh Jhunjunwala family. The firm sells consumer products including ready to cook, ready to eat, spreads, breakfast cereals, chocolate confectionery and staples such as edible oils. Their popular brands include Act II popcorn, Sundrop, Popz and Duo.
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