Agro Tech Foods announced on Thursday that it has acquired Del Monte Foods from Bharti Enterprises through a share swap deal.
Agro Tech Foods owns popular brands like ACT II Popcorn and Sundrop. The company’s board of directors approved the acquisition in a meeting on Thursday.
They also approved a proposal to change the company’s name from “Agro Tech Foods Limited” to “Sundrop Brands Limited.”
Following the news, the company’s shares dropped by over 5%, reaching Rs 981.05.
Details of the Share Swap Deal
Under the deal, Agro Tech Foods will issue 1.33 crore fully paid-up shares to Bharti Enterprises.
This will make Bharti the second-largest shareholder in Agro Tech Foods. Each share will have a face value of Rs 10 and be priced at Rs 975.5, including a premium of Rs 965.5.
Del Monte Foods (DMFPL) is a joint venture between Bharti Enterprises and DMPL.
Agro Tech Foods owns 59.29% of DMFPL, while the remaining 40.71% is held by DMPL India, a subsidiary of Del Monte Pacific.
Harjeet Kohli, Joint Managing Director of Bharti Enterprises, said that Bharti is happy with this combination, which will make it the second-largest shareholder in the merged entity.
