The Board of Agro Tech Foods on Thursday, November 14, approved the acquisition of 100% stake of Del Monte Foods by issuing the company’s shares to its shareholders.

The acquisition. valued at ₹1,300.11 crore, will be completed within 9 months, Agro Tech Foods said in an exchange filing.

The Board also approved changing the company name from Agro Tech Foods Ltd. to Sundrop Brands Ltd.

Upon completion of the proposed acquisition, Del Monte Foods will become a wholly owned subsidiary of the company.

Agro Tech Foods will issue 1.33 crore shares of the company with a face value of ₹10 each at ₹975.50 per share on a preferential basis.

The shares will be issued on a preferential basis to DMPL India, Bharti Enterprises, and related trusts.

Additionally, the Board has appointed Nitish Bajaj as an Additional Director and Group Managing Director of the company for a minimum of five years, effective from November 25, 2024.

Del Monte Foods is primarily engaged in the business of, including but not limited to, manufacturing, marketing, promoting, distributing and selling branded processed or packaged food products including ketchups, emulsions and olive oils in India, Malaysia, Singapore, Philippines, Sri Lanka, Indonesia, Cambodia, Maldives, Mongolia, Vietnam, United Arab Emirates, Brunei, Kingdom of Saudi Arabia, Kuwait, Ethiopia, South Korea, Hong Kong and Jordan.

The turnover of the target company for FY24 is ₹546.68 crore.

Shares of Agro Tech Foods Ltd. are currently trading 1.20% lower at ₹1,023.55.