Shares of DFM Foods, the owner of Crax and Natkhat brands, were under pressure on Wednesday, sliding 9 per cent to Rs 250.10 per share on the NSE, after US-based private equity firm Advent International Corporation inked a deal with the company's promoters to acquire 67.9 per cent of their stake for around Rs 851.6 crore in an all cash deal.
AI Global also made an open offer to buy up to 26 per cent from the company's public shareholders at a price of Rs 249.50 per share. This was 7.66 per cent lower than the company's last closing price of Rs 270.20 on the BSE.
"Al Global lnvestments is making an open offer to acquire up to 34,134,935 equity shares constituting 68.12 per cent of the paid-up share capital and 67.90 per cent of the expanded voting share capital...The purchaser has the right to appoint the Directors on the Board of the company upon closing of the transactions as per the terms of the share purchasing agreement," the company said in its exchange filing. READ THE FILING HERE
The Cyprus-based PE firm entered into a Share Purchase Agreement with (a) Delhi Flour Mills Company Limited, Mohit Jain and Rohan Jain to acquire up to 38.27 per cent of the paid-up share capital, and 38.14 per cent of the expanded voting share capital; (b) WestBridge Crossover Fund LLC, Aravali Investment Holdings and Jwalamukhi Investment Holdings to acquire 24.87 per cent of the paid-up share capital and 24.79 per cent of the expanded voting share capital, and (c) Manmohan Singh and Anuradha Sharma to acquire 4.99 per cent of the paid-up share capital and 4.97 per cent of expanded voting share capital.
The deal is expected to be closed over the next 3-4 months, pending regulatory approvals.
AI Global launched an open offer for the public shareholders of DFM Foods for 1.3 crore shares having a face value of Rs 2 each at an offer price of Rs 249.50 per equity share.
"Assuming full acceptance of the offer, the total consideration payable by the acquirer in accordance with the Takeover Regulations will be Rs 326.10 crore," the filing said.
At 11:11 am, the shares were trading at Rs 254.6 apiece, down 7.28 per cent, as against a 0.33 per cent rise in the Nifty50. So far, a total of 2.91 lakh shares have changed hands on the NSE and BSE.
ICICI Securities is the financial advisor to Advent and manager to the open offer. KPMG is exclusive financial advisor to DFM Foods.