US-based private equity firm Advent International Corporation has entered into a pact with the promoters of DFM Foods, which sells snacks under the Crax and the Natkhat brands, to acquire 67.9 per cent stake in the Delhi-based firm for around Rs 851.6 crore in an all cash deal.
AI Corp also launched an open offer for another 26 per cent stake or around 1.30 crore shares of DFM Foods Ltd at a price of Rs 249.50 per share, according to regulatory filings by DFM Foods Ltd.
AI Global Investments (Cyprus) PCC, a step down firm, will buy 67.90 per cent of the promoters' stake from the Delhi-based company for a total consideration of Rs 851.66 crore.
Promoters hold 75.60 per cent stake in DFM Foods, according to the regulatory filing.
The filings showed that the US investment firm has entered into a share purchase agreement with promoters Mohit Jain and Rohan Jain to acquire around 38 per cent stake.
AI Corp has also signed a purchase pact with WestBridge Crossover Fund, LLC, Aravali Investment Holdings and Jwalamukhi Investment Holdings to acquire 12,460,585 shares, constituting 24.87 per cent of the paid up share capital and 24.79 per cent of the expanded voting share capital.
The PE firm will buy 2,500,000 equity shares, constituting 4.99 per cent of the share capital from Manmohan Singh and Anuradha Sharma.
AI Corp launched an open offer for 1.3 crore shares having a face value of Rs 2 each at an offer price of Rs 249.50 per equity share. However, it is lower than Rs 270.20 at which DFM Food shares closed on BSE on Monday.
"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.
After purchase of the controlling stakes in DFM Foods, AI Global Investments would have "right to appoint Directors on the Board of the company" after closing of the transactions and "acquire control of the company", said DFM Foods in a regulatory filing.
DFM Foods had a revenue of Rs 483.62 crore in FY 2018-19 and had a net profit of Rs 32.76 crore.
AI Global Investments (Cyprus) PCC, is the investment hub for Asia and Eastern Europe regions for funds managed by Advent International Corporation.
DFM Foods hasd introduced Crax corn rings in 1984 and presently has sales in north, west and central India.
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