Authum Investment & Infrastructure Ltd and Mahi Madhusudan Kela acquire Prataap Snacks Ltd

Authum Investment and Infrastructure Limited ("AIIL or Acquirer") has signed a Share Purchase Agreement ("SPA") on September 26, 2024 with Mahi Madhusudan Kela (referred as "PAC"), for purchase of 46.85% stake in Prataap Snacks Ltd (PSL) from Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investment II, Sequoia Capital GFIV Mauritius Investments collectively be referred as ("Sellers"), subject to the satisfactory completion of conditions precedent as set out in the SPA.

Upon completion of this acquisition, AIIL will hold 42.31% equity shares of PSL and PSL will become an Associate Company of AIIL.

PSL is an Indian snack food company engaged in manufacturing and marketing of multiple product variants including but not limited to potato chips, extruded snacks and namkeen.

This acquisition aligns with our long-term strategy of diversifying our portfolio while investing in sectors that demonstrate both stability and growth potential. Our intention is to nurture and expand this business, maximizing value creation for all stakeholders and ensuring a sustainable, profitable future for the company.

The transaction is expected to be completed within 6 months, subject to completion of conditions precedent as detailed in the SPA.

Authum Investment & Infrastructure Limited ("Acquirer") and Mahi Madhusudan Kela in her capacity as a person acting in concert with the Acquirer ("PAC"), have announced an open offer for acquisition of up to 62,98,351 fully paid-up equity shares of face value of INR 5/- each ("Equity Shares") from the Public Shareholders of the Target Company, representing 26.00% of the Voting Share Capital of the Target Company on a fully diluted basis as on the 10th working day from the closure of tendering period, at a price of INR 864/- per Equity Share (the "Offer Price") aggregating to total consideration of up to INR 5,44,17,75,264/- (assuming full acceptance) payable in cash.

The Acquirer and the PAC have entered into a share purchase agreement dated September 26, 2024 (the "Share Purchase Agreement" or "SPA") with the Sellers, pursuant to which the Acquirer has agreed to acquire from the Sellers 1,02,48,582 (One Crore Two Lakhs Lakhs Forty Eight Thousand Five Hundred Eighty Two) Equity Shares of the Target Company and PAC has agreed to acquire from the Sellers 11,00,000 (Eleven Lakhs) Equity Shares of the Target Company at a price of ₹ 746 (Indian Rupees Seven Hundred Forty Six) per Equity Share ("SPA Price") for an aggregate consideration of ₹ 8,46,60,42,172 (Indian Rupees Eight Hundred Forty Six Crores Sixty Lakhs Forty Two Thousand One Hundred Seventy Two), completion of which is subject to the satisfaction or waiver of identified conditions precedent (including, but not limited to, receipt of all applicable statutory approval(s)) as set out in the Share Purchase Agreement., in compliance with applicable law, including the Foreign Exchange Management Act, 1999, the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and the SEBI (SAST) Regulations. The Share Purchase Agreement also sets forth the terms and conditions agreed between the Acquirer, the PAC and the Sellers, and their respective rights and obligations. The completion of Open Offer is a condition precedent to the Underlying Transaction.

Shares of Prataap Snacks Limited was last trading in BSE at Rs. 1053.75 as compared to the previous close of Rs. 887.30. The total number of shares traded during the day was 164153 in over 9372 trades.

The stock hit an intraday high of Rs. 1064.75 and intraday low of 889.85. The net turnover during the day was Rs. 162175673.00.

Source : Equity Bulls

Keywords

PrataapSnacks INE393P01035 StakeAcquisition AuthumInvestmentandInfrastructure