Decks cleared for Roquette to buy RSGBL's starch business

Decks have been cleared for French starch player, Roquette Freres to acquire starch business of Ahmedabad-based Riddhi Siddhi Gluco Biols Ltd (RSGBL). The company on Wednesday informed that an order sanctioning the scheme of arrangement for stake sale has been received from the Gujarat high court on May 1, 2012.

The company has de-merged and transferred its starch making and warehousing business to Riddhi Siddhi Corn Processing Private Limited. As per the scheme of arrangement Roquette would subscribe for and acquire majority stake in the resulting company - Riddhi Siddhi Corn Processing Private Limited.

Initially, Roquette would acquire about 60 per cent stake in RSGBL's starch business. World's third largest starch player, Roquette had acquired minority stake in the company through preferential allotment in 2006. "As per understanding Roquette is entitled to acquire up to 100 per cent of the shareholding of RSGBL in the resulting company," said statement filed with the Bombay Stock Exchange (BSE).