Britannia acquires controlling stake in Kenya's Kenafric Biscuits, stock price up over 1%

Britannia's share price on Tuesday jumped over 1 per cent to Rs 3808 on the NSE on account of the FMCG major acquiring a controlling stake in Kenya's Kenafric Biscuits Ltd while fully taking over Catalyst Britania Brands Ltd.

As per Britannia’s exchange filing on Monday, “The company's wholly owned arm Britannia and Associates (Dubai) Pvt Co Ltd (BADCO) has acquired control of Kenafric Biscuits Ltd (KBL), a private limited liability firm incorporated in Nairobi, Kenya, by subscribing to 51 per cent of the equity share capital of the company.”

The cost of acquisition was Kenyan Shillings (KES) 13.87 crore (Rs 9.2 crore), the regulatory filing also added.

Subsequently, KBL has become a step-down subsidiary of Britannia Industries. There is no turnover of KBL to be reported since it has not commenced operations, the company said.

Britannia Industries further said BADCO has acquired 100 per cent of the equity share capital of Catalyst Britania Brands Ltd (CBBL) for Kenyan Shillings (KES) 2.14 crore (Rs 1.42 crore), thereby making it a 100 per cent subsidiary.

CBBL is an investment company that owns the 'Britania' trademark in Kenya. The trademark 'Britania' is not the same as the 'Britannia' trademark of Britannia Industries Ltd, the filing said.

The shares of Britannia gained over 1 per cent to Rs 3818.5 per share on the BSE intraday on Monday.