Chipita dominoes for Olayan, Theodoropoulos and Nikas

By George Lampiris

The sale of its participation in Nikas as well as the participation in the consortium maintained by the Chipita SA group in India to Spyros Theodoropoulos, was followed by the sale of Chipita to Mondelez International by the Olayan group. In essence, after Chipita split into two companies, Chipita Global – all of Chipita’s assets transferred to Mondelez – and Olayan – Theodoropoulos’s Chipita Foods, the Olayan Group continued to maintain a majority stake in Chipita Foods, which owned a majority stake in Nikas as well as in Chipita’s joint venture with Britannia Industries Limited in India, which Mondelez did not acquire through the Chipita acquisition agreement, as it already has a subsidiary in the Asian country. Relevant stock market announcements preceded it on Tuesday morning.

What does the agreement between Theodoropoulos and Olayan provide?

Based on the agreement signed by the Olayan group with Spyros Theodoropoulos on Monday, January 3, the two sides decided that all the shares held by Chipita Foods in the Olayan group through its interest company, Competrol Establishment, would be transferred to Spyros and Spyros. to the company he maintains on Cypriot territory under the name Cryred Investments Ltd, which belongs to another company of his own under the name Kriescendos Investments Ltd. The percentage of Chipita Foods to which Nikas and the Chipita Joint Venture with Britannia belong in India and was transferred by the Olayan group to Spyros Theodoropoulos amounts to 95.05%. This is essentially the percentage held by Competrol Establishment and Competrol Establishment Cyprus, Olayan’s interests.

It will be recalled that the Olayan side owned approximately 80% of the Chipita group before the sale to Mondelez International and Chipita in turn owned 93% of Nika. Something similar happened in the case of the Indian consortium where the Olayan group also maintained a majority – in relation to Spyros Theodoropoulos – through its participation in Chipita. With the spin-off of the Chipita group into the two companies Chipita Global and Chipita Foods, the respective majority shares of Olayan passed to Chipita Foods and consequently through the agreement to Spyros Theodoropoulos and his interest companies.

The relationship with the Olayan group – Perspective for new business collaborations is maintained

At the same time, the desire of the Olayan group was through the agreement with Mr. Theodoropoulos to have business continuity and cooperation of the two sides in new projects and acquisitions of food companies that will follow in the future. That is why the Olayan side acquired the right of call option for 18.81% of Nika’s shares – a total of 10,000,000 shares -, which it has the opportunity to exercise from June 30, 2023 until June 30. 2028, which marks the continuation of the coexistence of the two sides.

The goal is to create a food group with a strong business footprint

Sources with knowledge of the agreement state that Spyros Theodoropoulos’s relationship with the Olayan group is maintained at a very good level, which is a precursor for the next joint steps. Spyros Theodoropoulos has always wanted to create a food group with multifaceted activity in individual sectors where, in addition to cold cuts, other activities such as dairy or other food categories could be included. We remind you that Spyros Theodoropoulos together with Dimitris Daskalopoulos tried to implement something similar in the past, when in 2005 Delta and Chipita joined forces to create Vivartia, then the largest Greek food group and at the same time a force to be reckoned with in Europe. – and not only – purchase.