Sugar manufacturer EID Parry today made an open offer to acquire 20 per cent stake in GMR Industries at Rs 110.69 per share.
Sugar major EID Parry has agreed to acquire 39.92 lakh shares, representing 20 per cent holding in the company, at Rs 110.69 per share, aggregating to Rs 44.19 crore, GMR Industries said in a filing to the Bombay Stock Exchange.
Yesterday, EID Parry had entered into a definite agreement with GMR Holdings Pvt Ltd to acquire a minimum 65 per cent equity in GMR Industries.
As per the December quarter shareholding pattern available on the BSE, GMR Holdings Pvt Ltd held 1.49 crore shares or 74.84 per cent shareholding in GMR Industries.
Post the open offer, GMR Group would become a minority shareholder in the company.
EID Parry, which is part of Chennai-based Murugappa Group, is a dominant player in the sugar industry and also has interests in bio-pesticides and nutraceuticals.
GMR Industries owns and operates three fully integrated sugar complexes in Andhra Pradesh and Karnataka.
The deal would mark EID Parry's entry into Andhra Pradesh and also consolidate its position as a leading sugar manufacturer in cane rich areas of north Karnataka.
EID Parry Chairman A Vellayan said the acquisition would strengthen its position as one of the leading sugar companies in India and increases the number of integrated complexes.
Shares of GMR Industries were trading at Rs 117.75 on BSE, up 5.23 per cent and EID Parry were trading at Rs 377 on BSE, up 2.91 per cent from previous close.
