Tasty Bite gets delicious

Tasty Bite Eatables has been looking delicious on the bourses for past couple of days. The stock today hit the 20% upper circuit at Rs.924, a new high too. Volumes are up by a whopping 22 times. Yesterday too, the stock had hit the 20%  upper circuit at Rs.770.

This brand of ready-to-eat foods was launched in USA in 2005 with 5 products. Today, it claims to be America's largest brand of prepared Indian food, available in Canada,Australia, New Zealand, Japan and UK. Its products include Indian meals, Asian meals & noodles and a line of organic ready-to-eat rices and whole grains. In India, it launched the Tasty Bite Food Service business (TFS) in 2006, making a range of sauces and formed frozen products to leaders in the Food service industry.

Today, the stock is up after the company stated that Japanese vegetable-based food products maker Kagome Co Ltd has acquired 70% stake in the company  for an undisclosed amount. The Japanese firm has bought the stake in US-based holding company Preferred Brands International Inc (PBI) whose arm in turn owns 74.22% of the company. Post this, Tasty Bite has become an subsidiary of Kagome with an indirect holding of 51.95% stake.

Although the deal value has not been disclosed, based on the imputed value of transaction from the open offer price, it is estimated to be around Rs 87.4 crore.

Kagome has made an open offer to public shareholders to acquire remaining 25.78% stake in the company. The company has sought to buy up to 6.6 lakh shares at Rs.655.57 each, aggregating Rs 43.4 crore.