Mawana Sugars To Acquire Mawana Foods Held By Usha International
Mawana Sugars Limited has informed that the board of directors of the company at its meeting has approved the following:
Purchase of the entire shareholding of Mawana Foods Private Limited (MFPL) held by Usha International Limited (UIL) at a total consideration of Rs.24.83 crores subject to the approval of shareholders. Detailed information is annexed below:
| 1 | Name of the target entity, details in brief such as size, turnover etc: | Mawana Foods Private Limited(MFPL) Size: 91,78,987 Equity Shares of Rs.10/- each fully paid up. Turnover:Rs.123,78,31,491/- as on31.3.2017. |
| 2 | Whether the acquisition would fall within related party transaction (s) and whether the promoter/ promoter group/group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at "arms length"; | Whether purchase of share would fall within related party transaction: Yes Nature of interest: Influence over the reporting entity Whether the transaction is done at "arms length": Yes |
| 3 | Industry to which the entity being acquired belongs : | Marketing of sugar, edible oils which are MSL business. |
| 4 | Object and effect of acquisition (including but not limited to, disclosure of reason for acquisition of target entity, if its business is outside the main line of business of the listed entity); | To strengthen the retail business of sales of sugar and edible oils. |
| 5 | Brief details of any governmental or regulatory approvals required for acquisition; | No |
| 6 | Indicative time period for completion of the acquisition; | Up to March 2019 |
| 7 | Nature of consideration - whether cash consideration or share swap and details of the same; | Cash (10% of the total consideration to be paid by MSL at the time of the signing of Definitive Agreement and the remaining consideration to be paid over a period of 12 months). |
| 8 | Cost of acquisition or the price at which the shares are acquired; | Rs.27.05 per share |
| 9 | Percentage of shareholding control acquired and/or number of shares acquired | 91,78,987 equity shares (100%) |
| 10 | Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3-year turnover, the country in which the acquired entity has the presence and any other significant information (in brief) : | Mawana Foods Private Limited deals with sales and marketing of sugar and edible oil products and has a very good market share in the retail business of sugar. Last 3 year turnover: F.Y. 2016-17: Rs.123,78,31,491/- F.Y. 2015-16: Rs. 111,65,85,364/ F.Y. 2014-15: Rs. 100,86,70,277/- Country in which the acquired entity has presence: India |
