Britannia Industries on October 3 announced the acquisition of a controlling stake in the Kenya-based Kenafric Biscuits Ltd (KBL) for Rs 9.2 crore.
"This is to inform you that 'Britannia and Associates (Dubai) Private Company Limited' (BADCO), a wholly owned subsidiary of Britannia Industries Limited, has acquired control of Kenafric Biscuits Limited, a private limited liability company incorporated in Nairobi, Kenya by subscribing to 51 percent of the equity share capital of the company," Britannia said in a regulatory filing.
The acquisition of 51 percent shares of KBL does not fall under related party
transactions as per the provisions of the Companies Act, 2013, Britannia clarified, adding that the promoter or promoter group of the company have no interest in the said acquisition.
The acquisition was completed on October 3, the exchange filing noted, adding that the deal was executed in the form of cash consideration.
"The object of the acquisition is manufacture and sale of biscuits in Kenya and African markets," it added.
There is no turnover of KBL to be reported since it has not commenced
operations, Britannia noted, adding that the biscuit maker so far has a presence in Kenya's Nairobi.
Britannia's shares dropped by two percent at the BSE ahead of the announcement, as it closed at Rs 3,768 apiece, which was Rs 77 lower as compared to the previous day's close.
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