In a strategic move to expand its global footprint, Sarveshwar Foods Limited has announced the acquisition of the remaining 55% stake in Natural Global Foods DMCC, a Dubai-based entity. This acquisition, approved during a board meeting held on November 29, 2024, is poised to make Natural Global Foods DMCC a wholly owned subsidiary of Sarveshwar Foods.

Natural Global Foods DMCC, registered in the Dubai Multi Commodities Centre (DMCC), is a company operating in the foodstuff and beverage trading industry. Despite not yet commencing its business operations, the acquisition holds great promise for Sarveshwar Foods to strengthen its operational control and decision-making processes in the Middle East market. This strategic acquisition is expected to foster significant synergies that will propel the company’s growth in the region.

The due diligence and valuation reports were thoroughly evaluated by the Board of Directors, which led to the approval of the acquisition deal. With this acquisition, Sarveshwar Foods aims to streamline its Middle East operations, bringing international presence and attracting strategic investors and partners to the business. This deal also aligns with the company’s goal of international expansion, particularly in the food and beverage industry, which holds immense potential for future growth.

Impact and Strategic Importance:
The acquisition of Natural Global Foods DMCC marks a pivotal moment for Sarveshwar Foods. It is set to elevate the company’s presence in a high-growth region like the Middle East, where the demand for natural foods and beverages is rapidly increasing. The business expansion will allow Sarveshwar to tap into new markets, access wider distribution channels, and leverage the synergies between the two entities. Furthermore, this move is expected to accelerate the growth of Sarveshwar Foods as it establishes a stronger foothold in the region’s competitive food market.

The transaction is scheduled to be completed by December 31, 2024 and will involve a cash consideration of 3043.64 AED per share for the 165 shares constituting the 55% stake. This acquisition is not a related party transaction, as Sarveshwar Foods had previously acquired 45% equity in Natural Global Foods DMCC, and the remaining 55% will be acquired from existing shareholders. The deal is being done at an arm’s length basis, ensuring transparency and fairness in the transaction process.

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Regulatory Compliance:
In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, Sarveshwar Foods has disclosed the details of this transaction as per the regulatory requirements, including the acquisition price, shareholding structure, and the strategic objectives behind the acquisition. No governmental or regulatory approvals are required for this acquisition, making the process straightforward.

This acquisition adds to the growing list of food and beverage industry players consolidating their positions in key markets to achieve faster growth and broader operational control. Sarveshwar Foods’ expansion into Dubai will play a key role in its long-term business strategy.

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