NHC FOODS LTD. (NHC), a leading food processing company in India, has announced the acquisition of a 96.21% equity stake in Intra Metal Trading LLC-FZ (Intra), a Dubai-based metal trading company. The acquisition is expected to strengthen NHC’s presence in the global metal market and provide access to new markets and resources.
Details of the Acquisition:
- NHC has acquired 96.21% of Intra’s equity shares through a combination of primary and secondary share purchases.
- The company had remitted an advance of $6,91,616.60
- The acquisition is subject to customary closing conditions and regulatory approvals.
| Name of the target entity, details in brief such as size, turnover etc. | lntra Metal Trading LLC-FZ (“lntra”) holds Trade License No.2311650 and was officially incorporated under Meydan-Free Zone regulations on September 7, 2023. The primary objective of the company is to engage in the trading of agricultural commodities and metals. lntra, being a recent incorporation, have not commenced its business operations until October 31, 2023. The company was established with an initial capital of AED 100,000/-, represented by 100 shares of AED 1,000 each. |
| Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether. the same is done at “arm,s length” | No, the acquisition would not fall within related party transaction(s) and promoter/ promoter group / group companies doesn’t have any interest in the entity being acquired” |
| lndustry to which the entity being acquired belongs | Agri Commodity Trading. |
| Objects and impact of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity) | Through acquisition of lntra, Our Company is planning to expand its Agri business operations in Gulf countries. |
| Brief details of any governmental or regulatory approvals required for the acquisition | NA |
| lndicative time period for completion of the acquisition | Within 3 months |
| Consideration – whether cash consideration or share swap or any other form and detaits of the same | Cash |
| Cost of acquisition and/or the price at which the shares are acquired | Our Company has acquired shares at valuation of AED 1000 each equivalent to USD 272.29 per share amounting to USD 6,91,616.60 (lNR 5.77 crores) |
| Percentage of shareholding / control acquired and / or number of shares acquired | Post issuance of equity, Our Company will get 2540 equity shares of lntra and will hold 96.21% stake in the lntra. |
| Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief) | lntra having Trade License No. 2311650, incorporated under Meydan-Free Zone regulations, Dubai UAE on September 7, 2023. Originally company was incorporated with the object of Trading in Agri Commodities and Metals, however post Our Company’s’ investment, lntra will be solely into Agritrading i.e. import and export. lntra, being a recent incorporation, have not commenced its business until October 31,2023. |
Benefits of the Acquisition:
- Strengthen NHC’s position in the global metal market: Intra has a well-established network of suppliers and customers in the Middle East and Africa. This acquisition will give NHC access to new markets and resources, allowing it to expand its global reach and market share.
- Diversify NHC’s business: NHC is primarily a food processing company. The acquisition of Intra will help NHC diversify its business interests and reduce its dependence on the food processing sector.
- Synergies: The combined business will benefit from potential synergies between NHC’s existing food processing business and Intra’s metal trading activities. This could lead to cost savings and improved operational efficiency.
About NHC FOODS LTD.
NHC FOODS LTD. is a leading food processing company in India. The company produces a wide range of food products, including biscuits, snacks, and confectionery. NHC has a strong presence in the Indian market and is also expanding its international reach.
About Intra Metal Trading LLC-FZ
Intra Metal Trading LLC-FZ is a Dubai-based metal trading company. The company sources and supplies a wide range of metals to customers in the Middle East and Africa. Intra has a well-established network of suppliers and customers and is a leading player in the regional metal trading market.
