Patanjali Foods Limited on Monday through an exchange filing announced Board of Directors of the company has approved the acquisition of the entire non-food business of Patanjali Ayurved Limited (PAL) for Rs 1,100 crore on July 1, 2024.
Details of the Acquisition
The acquisition covers all movable assets, immovable properties, contracts, licenses, books and records, employees, and certain assumed liabilities of PAL.
The business operations are primarily based at the manufacturing plant located at Patanjali Foods & Herbal Park in Haridwar, Uttarakhand.
Transaction Type - Slump sale on a going concern basis.
Transaction Value- Rs 1,100 crore.
The business operations are primarily based at the manufacturing plant located at Patanjali Foods & Herbal Park in Haridwar, Uttarakhand. | Representative Image
Payment Structure
The purchase price will be paid in five tranches which include:
First tranche - 20 per cent within 10 business days after approval from Competition Commission of India and shareholders.
Second tranche - 20 per cent within 10 business days after approval from PAL's lenders.
Third tranche - 45 per cent within 30 business days from the effective date.
Fourth tranche - 10 per cent within 10 business days after receiving a No Dues Certificate from PAL's lenders.
Fifth tranche - 5 per cent within 10 business days after the conveyance of all properties and required information.
Regulatory Approvals
The transaction is subject to various approvals.
1. Shareholders' Approval - Required for altering the Main Objects clause of the Memorandum of Association and for the acquisition.
2. Lenders' Approval - Necessary from both Patanjali Foods' and PAL's lenders.
3. Competition Commission of India (CCI) - Required under the Competition Act, 2002.
The non-food business has a turnover of Rs 6,199 crores for the year ending March 31, 2024.
Patanjali Foods Limited shares
The shares of the company on Monday closed at Rs 1,710.00, up by 7.45 per cent.
