By Gus Trompiz PARIS, Nov 11 (Reuters) - Louis Dreyfus Firm
By Gus Trompiz
PARIS, Nov 11 (Reuters) – Louis Dreyfus Firm (LDC) AKIRAU.UL has agreed to promote a big stake to Abu Dhabi-based holding firm ADQ, marking the primary exterior funding into the family-run commodity group, based by Leopold Louis-Dreyfus in 1851.
LDC’s holding agency will promote an oblique 45% fairness stake in LDC to ADQ, the businesses mentioned in an announcement on Wednesday.
Together with Archer Daniels Midland Co ADM.N, Bunge Ltd BG.N and Cargill CARG.UL, Louis Dreyfus belongs to the ABCD quartet of the world’s main commodity buying and selling homes.
It has been making an attempt to emerge from a interval of weak margins for getting and promoting staple crops and, in widespread with its friends, has shifted in direction of extra in direction of meals processing to attempt to enhance income.
The transaction worth was not disclosed however the corporations mentioned a minimal of $800 million can be invested into LDC.
The deal, topic to regulatory approvals, additionally features a long-term provide settlement to promote agricultural commodities to the United Arab Emirates, the businesses mentioned.
Margarita Louis-Dreyfus, who assumed management of the group in 2009 after the dying of her husband Robert, had been in search of an investor after increase substantial debt to purchase out minority household shareholders.
After she informed Reuters in January she may promote a sizeable non-controlling stake, reviews in September confirmed that LDC was in talks to promote a stake to ADQ.
ADQ, established in 2018, mentioned the funding in LDC would add to its meals and agriculture portfolio after it agreed this yr to amass 50% of agribusiness group Al Dahra Holdings.
In September, it introduced the creation of Silal, an organization to diversify meals sources and improve the provision of locally-grown meals.
ADQ will get hold of board seats and different shareholder rights in relation to the dimensions of its stake, LDC’s press service mentioned by electronic mail, declining to provide additional particulars.
Rothschild & Co acted as the only real monetary adviser to ADQ, the financial institution mentioned individually.
Margarita Louis-Dreyfus borrowed round $1 billion from Credit score Suisse to purchase out practically all household minorities in early 2019.
Her Akira household belief subsequently managed greater than 96% of LDC’s holding group. The holding in flip owns about 95% of LDC, with workers holding the rest.
In its first-half outcomes, LDC declared fairness of $4.5 billion as of June 30, down from $4.eight billion on Dec. 31.
Interim income rose, with LDC pointing, like different retailers, to improved buying and selling margins linked to cost volatility and robust Chinese language demand.
(Reporting by Gus Trompiz, extra reporting by Sudip Kar-Gupta, Soumyajit Saha and Davide Barbusia, modifying by Louise Heavens, Veronica Brown and Barbara Lewis)
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