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Renuka Sugars promoter, VC Narendra Murkumbi steps down

Press Trust of India  |  New Delhi 

Crisis-hit Shree and has stepped down as part of ceding control to co-under a plan.

As part of the rejig, Singapore-based Wilmar Sugar today acquired additional shares worth Rs 785 crore of the company. With its stake now rising to 38.57 per cent from 27.24 per cent, Wilmar Sugar has also launched a Rs 811 crore open offer for existing shareholders of Renuka Sugars, according to regulatory filings.

Post the open offer, entities would no longer continue as promoters of

has signed a binding agreement with banks. Lenders would snap up substantial stake in Renuka Sugars in lieu of outstanding

The company had a consolidated net debt of around Rs 9,000 crore at the end of March 2016.

has acquired additional 48.18 crore equity shares of for a consideration of around Rs 785 crore. Its stake in Renuka Sugars has increased to 38.57 per cent, triggering open offer.

Wilmar Sugar launched an open offer of up to 49.83 crore shares, constituting 26 per cent of the emerging fully diluted voting equity share capital of Renuka Sugars. The open offer price is Rs 16.29 per share, taking the total size at up to Rs 811 crore.

"has tendered his resignation from his executive position as and Managing of the company," the filing said.

The board has accepted his resignation. However, Murkumbi will continue to hold this position during the notice period, which extends for 90 days or until completion of the open offer being made by Wilmar Sugar Holdings (WSH), whichever is later.

In a separate filing, Renuka Sugars said that it has allotted 48,18,43,884 equity shares to Wilmar Sugar Holdings.

That apart, Renuka Sugars' board approved allotment of nearly 49 crore shares to various lenders on preferential basis at Rs 16.28 per share as part of It approved allotment of 4.28 crore Optionally Convertible Preference Shares (OCPS) and around 7.44 crore redeemable preference shares to lenders. Lenders would also be allotted 5,521 non-convertible debentures of Rs 10 lakh per share at par.

Last year, Renuka Sugars had announced issue of up to 50 crore compulsorily convertible preference shares (CCPS) at Rs 16.27 each to Wilmar Sugar Holdings. Last month, the (CCI) approved the additional stake acquisition by Wilmar Sugar Holdings.

According to open offer document, the board of directors of Renuka Sugars would be reconstituted post the offer in a way that Wilmar Sugar Holdings will have a majority of non-independent directors on the board. Vidya Murkumbi would resign from the position of director, while would cease to hold the executive position of and MD.

The would undertake all necessary steps and actions to declassify itself as a 'promoter' of the Renuka Sugars, thereby ceasing control of the company and granting Wilmar Sugar Holdings sole control.

As of December 2017 quarter, promoters' total stake in the company was 54.47 per cent, including WSH's shareholding of 27.24 per cent.

WSH is a wholly-owned subsidiary of and is the main holding company for the Wilmar Group's global sugar and ethanol businesses, including assets in Australia, New Zealand, Indonesia, and

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 20:00 IST