Deal Curry | 23 November 2010
by Deeshesh Chheda
Hyderabad-based Neha International is acquiring remaining 49.99% stake in Oromia Wonders PLC, a floriculture unit located in Ethiopia through its wholly owned subsidiary Globeagro Holdings, Mauritius.
With this acquisition, Neha International through Globeagro Holdings will own 99.99% in Oromia Wonders PLC.
In February 2008, Neha International acquired Mauritius-based Globeagro Holdings, which held a 99% stake in Alliance Flowers Plc., and 50% stake each in Holetta Roses Plc. and Oromia Wonders Plc.
Transaction Note
Neha International which is promoted by G Vinod Reddy, started business in 1995 and entered Ethiopia in 2004. It has sold off farm in Pune and shifted key operations to the African nation where it has two set of land for floriculture as well as foodgrains.
It has expanded beyond being a supplier of flowers to UK and Netherlands in Europe, Japan in Asia and also the Middle Eastern markets of Saudi Arabia, Qatar and UAE. It is now aiming to generate value with cultivation of rice and pulses besides wheat and oil seeds.
It started operations in a phased manner on 4,000 hectares on lease in Ethiopia and in June this year disclosed it has acquired 10,000 acres in Ethiopia through its wholly owned subsidiary as part of diversification into agriculture.
Acquisition of Globeagro Holdings made Neha International one of the largest exporter of roses from Ethiopia to Japan.
Karuturi Global is also expanding its operation and has taken advantage of the conducive climate for agriculture in Ethiopia that also offers incentives for investors besides providing a base to target markets in Middle East and Europe by acquiring hectares of land in Ethiopia on lease and also by acquiring Ethiopian companies.
Ruchi Soya, a leading edible oils and soya foods company has also signed up with the Ethiopian government to grow soya beans, maize and pulses in that country. Early this year, the Indore-headquartered company acquired 25,000 hectares on a 25-year lease with an option to double the area.
