Swiss dairy giant Emmi’s subsidiary Kaiku has increased its stake in Tunisia’s second largest dairy company, Centrale Laitière de Mahdia SA (Vitalait).
Swiss dairy giant Emmi, which via its Spanish subsidiary Kaiku, has increased its stake in Centrale Laitière de Mahdia SA. Centrale Laitière de Mahdia, which is based in Mahdia, Tunisia, is the No.2 player in Tunisia’s dairy market. It markets its products under the Vitalait brand and makes drinking milk, yogurt, yogurt drinks and desserts and has a turnover of around $146m.
Emmi has held a stake in Kaiku since 2006 and owns 73.4% of the company. Kaiku invested in Centrale Laitière de Mahdia in 2012. The new investment sees Kaiku increase its stake in Centrale Laitière de Mahdia from 45.4% to 54.7%. This means that Emmi holds a 40.2% stake in Centrale Laitière de Mahdia and makes Tunisia Emmi’s fourth largest international market.
The investment is the first of two investment tranches – the second tranche will come in 2021. In 2021, Kaiku will increase its stake from 54.7 % to 64.0 %. As a result, Emmi’s stake in Centrale Laitière de Mahdia will rise to 47.1%.
As a result, Emmi, which holds 73.4 % of shares in Kaiku, will have a 40.2 % stake in Centrale Laitière de Mahdia SA after the first step. After the second step, due in the first half of 2021, Emmi’s stake will be 47.1 %.
The parties have not disclosed the purchase price nor any other details of the contract. The transaction will also be subject to the approval of the Tunisian regulators.
