Zuari Global Acquires Stake In FFPL
Zuari Global Limited has acquired around 48. 98% (approx) shares of Forte Furniture Products India Private Limited (FFPL) from Indian Furniture Products Limited (IFPL), subsidiary of the Company.
1. Details of the target company:
Forte Furniture Products India Private Limited ("FFPL"), a company registered under Companies Act, 2013 and having a registered office at G-106, SIDCO Industrial Estate, Kakalur, Thiruvallur, Tamil Nadu - 602003.
2. Whether the transaction would fall within related party transactions and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, whether the same is done at "arm's length":
The Company has acquired around 48.98% (approx) shares of FFPL from Indian Furniture Products Limited ("IFPL"). IFPL being a subsidiary of the Company, as such the promoters also have an indirect interest in the entity acquired and IFPL being a related party the transaction falls under the related party transaction.
The said transaction has been done at "arm length".
3. Industry to which the entity being acquired belongs:
To carry out the business of manufacturers, traders, wholesalers, retailers, licensors, dealers, importers and exporters of all type of furniture, wood, plywood, board, particle board, forest products and hardware of any type and description including products in conjunction with wood, plywood, board, particle board, laminates, and furniture made from brass, steel, fibre glass, plastics and other alloy and handicraft and fittings.
4. Objects and effects of the acquisition
The object of the acquisition of FFPL is restructuring.
5. The indicative time period for completion of the acquisition:
The acquisition is proposed to be completed within 60 days from the date of board approval i.e. February 8, 2019
6. Cost of the acquisition cost of acquisition or the price at which the shares are acquired
Rs. 13,85, 72,000/- (Rupees Thirteen Crores Eighty-Five Lakhs and Seventy-Two Thousand only), for 1,37,20,000 (One Crore Thirty-Seven Lakhs and Twenty Thousand) equity shares of face value of Rs. 10/- each in the paid-up share capital of FFPL.
7. Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, and history of last 3 years turnover, a country in which the acquired entity has a presence and any other significant information (in brief)
FFPL was incorporated on February 1, 2017, in Chennai, India as 50:50 joint venture Company between Indian Furniture Products Limited and Fabryki Mebli "Forte" S.A., Poland with the object of doing the business of manufacture and sale of furniture across India. The Company has a turnover of Rs. 5084.23 lakhs for the period ended 31st March 2018 being the first year of operations.