E.I.D.-Parry (India) Limited (“EID Parry”) has entered into Definitive Agreement with GMR Holdings Private Limited to acquire majority equity stake in GMR Industries Limited (“GMR Industries”), the agri-business entity of GMR Group. GMR Industries, listed on BSE and NSE, owns and operates threefully integrated sugar complexes in Andhra Pradesh and Karnataka with a combined installed crushing capacity of 11,000 TCD, 46 MW of co-generation and 95 KLPD of distillery.
The agreement in this regard was signed today at Chennai by Mr. A Vellayan, Chairman, EID Parry India Ltd. And Mr. K Balasubramanian, Director, GMR Holdings.
As per the definitive agreement entered into between the parties, GMR Group will divest a majority equity stake such that post the mandatory open offer (as per SEBI regulations), EID Parry would hold a minimum 65% equity stake in GMR Industries. Post the open offer, GMR Group would become a minority shareholder in the company.
The transaction is in line with GMR Group’s overall strategy to divest its non-core assets and focus on its infrastructure and energy business’ going forward. Currently the Group has significant interest in Airports, Energy, Highways and Urban Infrastructure. Recently, the Group raised over US$ 500m to fund the expansion plans of GMR Infrastructure and GMR Energy.
Rothschild acted as the sole financial advisor to GMR Group on the transaction.Mr. GM Rao, Group Chairman from GMR Group said, “EID Parry is one of the most respected and renowned sugar companies in India. We are confident that this development would be rewarding and beneficial for all stakeholders including the shareholders, farmers and employees of the company.”
The transaction consolidates EID Parry’s position as one of the leading sugar manufacturers in cane rich areas of North Karnataka and marks its entry into Andhra Pradesh. Late last year, EID Parry also acquired Sadashiva Sugar with a crushing capacity of 2,500 TCD and 15.5 MW of co-generation in North Karnataka.
Mr. A. Vellayan, Chairman of EID Parry said, “This acquisition strengthens our position as one of the leading sugar companies in India and increases the number of integrated complexes. It thus provides EID Parry a platform to tap the sugar markets other than Southern India.”