LT Foods shares climb 6% on rice business deal with HUL

Shares of LT Foods climbed 6 per cent today after Hindustan Unilever (HUL) signed an agreement with the company for sale of rice export business for Rs 25 crore.
The stock of LT Foods surged 6.04 per cent to settle at Rs 236.90 on BSE. Intra-day, it zoomed 16.29 per cent to Rs 259.80.
At NSE, shares of the company went up by 5.45 per cent to close at Rs 236.
HUL's stock slipped 0.39 per cent to end at Rs 846 on BSE. During the day, it fell by 1.26 per cent to Rs 838.55.
"... It (HUL) has signed an agreement for the sale of its rice exports business carried out primarily under the brands 'Gold Seal Indus Valley' and 'Rozana', to LT Foods Middle East DMCC, a group company of LT Foods Limited (owner of 'Daawat')," the company said in a BSE filing yesterday.

HUL said the deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing.
"HUL's decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business," it added.