Mauritian sugar group Omnicane has increased its stake in UK-based ingredients, sugar and baking firm Real Good Food Co as it looks to improve its access to the European sugar market.
Omnicane raised its stake in RGFC from 14% to 20% through the purchase of around 4m newly-issued shares in a deal that raised GBP2.4m (US$3.8m). Proceeds will be used to pay down debt.
The tie-up will provide Omnicane with greater access to the European sugar market. Europe is a principal importer of raw cane sugar for refining and Omnicane's sales are likely to benefit from the strong demand in the region.
The companies said they are also exploring other growth avenues including potential joint ventures in value-added sugar and the possible export of RGFC products to international markets. In particular, RGFC highlighted the potential offered by exporting its products to rapidly expading markets on the African continent.