The share price of Crax maker DFM Foods plunged nearly 9 percent intraday on Wednesday after Advent International launched an open offer for another 26 percent stake or around 1.30 crore shares of the company at a price of Rs 249.50 per share. The price is lower than Rs 270.20 at which DFM Food shares closed on BSE on Monday.
At 10:03 am, DFM Foods was trading 6.05 percent lower at Rs 258 per share on the NSE. Intraday, the share price tumbled 8.95 percent to Rs 250.10.
AI Global Investments (Cyprus) PCC, a step-down firm, will buy 67.90 percent of the promoters' stake from the Delhi-based company for a total consideration of Rs 851.66 crore.
Promoters hold 75.60 percent 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 percent of the paid-up share capital and 24.79 percent of the expanded voting share capital.
The PE firm will buy 2,500,000 equity shares, constituting 4.99 percent of the share capital from Manmohan Singh and Anuradha Sharma.
"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 the 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 had introduced Crax corn rings in 1984 and presently has sales in north, west and central India.
(Inputs from PTI)
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