Italian major Parmalat Spa is increasing its stake in Swojas Energy Foods to 74 per cent from the current holding of 51 per cent. P K Joshi, general manager (finance) said the foreign company will be picking up the stake through a preferential offer. However, the offer price has not yet been decided, he said.
According to market sources, the offer price is expected to be at a premium to the current market price. The Italian food major last week received FIPB permission to increase the stake.
Last year, Paramalt had invested Rs 8.4 crore in the company to acquire a 51 per cent stake. With the current offer, the Indian promoters and Sicom, the other major shareholders, stake is expected to drop to around 12 per cent. The rest of the equity is held by the public. The $3.6-billion Parmalat Spa has interests in processed foods and is one of the world's top dairy products manufacturer. The Italian milk major has 119 manufacturing facilities in over 25 countries. Paramalt is bullish on the Indian dairy market which has showed tremendous potential in the last one year.
Funds invested by Paramalt in the earlier preferential offer were utilised to retire the high-cost debt and as working capital for the company. However, Joshi did not disclose how the company intends to utilise the funds to be generated through the current offer. The company board was revamped when the foreign partner acquired 51 per cent stake. It is expected to be changed again. Paramalt plans to introduce new range of products like branded paneer other than the regular items like milk, butter, cheese and milk powder.
