CAC Corporation, Japan To Acquire 51 % Ownership Of Accel Frontline
CAC Corporation, Japan (CAC) and the current promoters of Accel Frontline Limited have announced that they have signed definitive agreements to induct CAC as a strategic partner in Accel Frontline Limited (AFL or the Company).
Under the terms of the agreements, CAC will acquire a minimum of 51 % equity shareholding in AFL through purchase of equity shares from the promoters., subscription of new equity shares of the Company and purchase of equity shares from public shareholders by the mandatory open offer for up to 26% of the Company's fully diluted equity capital at a price of Rs 45 per equity share.
The Company will be run as a Joint Venture between CAC and the current promoters of AFL who will continue to be significant owners of the Company. Mr N.R.Panicker will remain as the Executive Chairman of the Company.
As a part of the growth plans for AFL, CAC will invest in fresh equity in the Company to expand its capital base. In addition, both CAC and the current promoters of AFL will provide long-term soft loans to the Company to enhance AFL's long-term working capital.
The transaction is subject to statutory approvals from regulatory authorities in Japan and India.