Bunge India, a subsidiary of New York-based Bunge, has agreed to buy Amrit Banaspati's edible oil and fats business and the 'Gagan' brand for a total sum of Rs 325 crore.
"We have entered into an agreement with Bunge India [a subsidiary of New York-based Bunge] to sell our manufacturing facility [in Punjab] as well as rights of 'Gagan' brand," Amrit Banaspati Director JC Rana told PTI today.
Amrit Banaspati will sell its plant at Rajpura in Punjab for Rs 220.72 crore while rights of the Gagan brand, owned by Amrit Corp, would be sold for Rs 104.50 crore to Bunge India, he said.
However, Rana said that the acquisition was subject to the approval of shareholders of Amrit Banaspati and Amrit Corp. "The acquisition is expected to complete by mid of February," he informed.
Rana further informed that promoters of Amrit Banaspati have also signed a non-competing agreement whereby they would not reenter the edible oil business.
"Bunge India will give Rs 47 crore to promoters for signing non-competing agreement."
Listed entity, Amrit Banaspati is a leading edible oils and fats company. Its facility at Punjab has installed capacity of 400 tonne per day including 'Vanaspati', bakery, refined oil with brand name of Amrit, Bansari, Ginni.