Board of Ruchi Soya Industries approves investment by Devonshire Capital & scheme of arrangement

At meeting held on 02 November 2017

The Board of Ruchi Soya Industries has approved signing of a binding term sheet with Devonshire Capital, a global private equity major for investment in Ruchi Soya Industries via acquisition of a majority stake including issue of fresh equity. The Board also approved the filing of a petition u/s 230 of the Companies Act, 2013 in the NCLT to enter into a scheme of arrangement subject to applicable approvals.

The binding term sheet details Devonshire Capital taking 51% equity stake in RSIL as per SEBI guidelines post approval from the creditors and other statutory/regulatory approvals. It also covers restructuring of RSIL's certain branded packaged oils distribution business being spun out and to be 100% acquired by the investor for a gross consideration amount of INR 4000 crores to be paid to RSIL in various tranches. The amount would be substantially utilized for payment to all lenders over the period of time as described in the Scheme of Arrangement.

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