INDIA – Merchant banking firm Devonshire Capital is planning to acquire 51 per cent stake in Ruchi Soya Industries (RSIL) and will invest Rs 4,000 crore (US$619 million) in certain branded packaged oils distribution business of the agri and food FMCG company.
RSIL’s Board of Directors has approved signing of a binding term sheet with Devonshire Capital for investment in Ruchi Soya Industries via acquisition of a majority stake, including issue of fresh equity, a release issued here said.
As per the agreement details Devonshire Capital will take 51 per cent equity stake in RSIL as per the SEBI guidelines post approval from the creditors and other regulatory approvals, it said.
There will also be restructuring of RSIL’s certain branded packaged oils distribution business being spun out and to be 100 per cent acquired by the investor for an amount of Rs 4,000 crore, to be paid to RSIL in various tranches.
The amount would be utilised for payment to all lenders over the period of time as described in the Scheme of Arrangement.
“This strategic investment by Devonshire will enhance the value of our business and provide an effective solution to resolve our outstanding issues with the banks, financial institutions and operational creditors.
We are optimistic on an early completion of this restructuring exercise after all necessary approvals of the lenders and legal formalities,” RSIL Managing Director and CEO, Dinesh Shahra said.