Aditya Birla Capital and Aditya Birla ARC form JV with Varde Partners

To create a platform to pursue investment in stressed and distressed assets in India

Aditya Birla Capital and Aditya Birla ARC have executed agreements on 29 August 2018 to enter into a strategic joint venture with Varde Partners (Varde) and create a joint platform to pursue investments in stressed and distressed assets in India. The Varde Partners organisation is a global investment adviser focused on credit and value investing strategies.

As a part of this platform, Varde through its affiliates will acquire a 50% joint controlling stake, subject to regulatory approvals, in the Aditya Birla ARC, which is currently a wholly owned subsidiary of the Company. Pursuant to the transactions contemplated in the agreements, the Aditya Birla ARC will be jointly owned and controlled by Varde and the Company.

Subject to regulatory approvals, the Company will receive not less than Rs 98 crore from Varde Partners, for the transfer of securities in Aditya Birla ARC. As a part of the restructuring of the ownership and share capital of Aditya Birla ARC, both the Company and Varde will also contribute to the capital of Aditya Birla ARC.

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