Convergent Finance LLP and private equity firm Samara Capital will jointly acquire a 51.8% stake in Agro Tech Foods Limited from Conagra Brands, Inc. for $78 million (Rs 650 crore).
The funds will pay another $44 mn (Rs360 cr) for the additional 26% of the outstanding shares through mandatory open offer.
Conagra is a controlling shareholder of ATFL, which sells popular brands ACT II popcorn and Sundrop edible oil.
ATFL has a market cap of Rs2431 crore as on Thursday. ATFL shares were closed at Rs997.85, up by 3.5% on BSE.
ATFL will continue to license the ACT II brand from Conagra for use in India.
“As India’s rapidly-growing consumer class expands and discretionary income levels continue to rise, we will expand ATFL’s distribution reach and product range, thereby transforming it into the country’s leading packaged and snack food platform,” said Harsha Raghavan, Managing Partner at Convergent Finance.
“We are delighted to lead the acquisition of a majority stake in ATFL. We intend to create a large and unique branded food platform in the country with this acquisition,” said Manish Mehta, Managing Director and Co-Chief Investment Officer at Samara Capital.
Source: Economic Times