Unity Foods to invest nearly Rs5bn in Sunridge Foods subsidiary

Unity Foods Limited will make an equity investment of almost Rs5 billion in its subsidiary Sunridge Foods (Private) Limited, which makes sugar and rice among other products, the company shared in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“Unity Foods Limited hereby convey that the Board of Directors (BoD) of the company in its meeting held today has approved equity investment of Rs4,999,999,995 in Sunridge Foods (Private) Limited (Sunridge), a wholly owned subsidiary of Unity, by way of subscription of 111,111,111 right shares at Rs45 per share (including premium of Rs35 per share),” read the notice.

Unity said the investment is being made with a vision of long-term growth.

According to the company, Sunridge has become a true national brand that is increasing the availability of its products throughout the country and eying the export market as well.

“This investment will help the subsidiary increase its profitability which will, in turn, benefit the company and its shareholders,” added the notice.

Back in December, Unity said it will make an equity investment of almost Rs2 billion in Sunridge, by way of a subscription of 44,444,444 right shares at Rs45/- per share (including a premium of Rs35 per share).

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Incorporated in Pakistan in 1991 as a Private Limited Company, Unity previously operated in the textile sector under the name of Taha Spinning Limited.

Later, due to operating losses and financial problems, that business was closed down and the company was revived under the name of Unity Foods with the principal business activity of the company having been shifted from yarn manufacturing to edible oil extraction, refining and related businesses.