INDUSTRIAL holding company DCC has increased its stake in the Allied Foods distribution company from 30 per cent to 50 per cent but has no plans to take a majority stake.

DCC has increased its stake in Allied Foods through a complicated transaction which involves DCC acquiring a 50 per cent stake in Millais Investments, which in turn has acquired Allied Foods. Allied management holds the other 50 per cent of Millais and DCC does not have any specific option to buy the management stake.

The deal involves DCC getting £3.8 million for its existing 30 per cent stake in Allied and then reinvesting £2.75 million in Millais. Allied management has also received 776,795 DCC shares worth £2.06 million in exchange for Allied shares which were subsequently acquired by Millais for cash.