Shares of GMR Industries rose on Monday after EID Parry announced that it has entered into a ‘definitive agreement' with GMR Holdings Pvt Ltd to acquire a majority stake in the sugar manufacturer.
After the mandatory open offer to the public shareholders for an additional 20% stake, EID Parry will end up with 65% stake in GMR Industries. The GMR group is selling its stake to EID Parry at Rs57 per share. EID Parry will offer Rs110 per share to the public. The total consideration is likely to be around Rs1.15bn.
At 9:55 am, GMR Industries was quoting at Rs118, up Rs6.70 or nearly 6% over the previous close. It earlier touched a high of Rs122 after opening at Rs115. EID Parry was trading at Rs374, up almost Rs8 or 2.2%.
On April 25, GMR Holdings and EID Parry signed a Share Purchase Agreement for the acquisition of up to 1,29,75,110 but not less than 1,01,80,471 equity shares of GMR Industries at a price of Rs57.35 per share of Rs10 each, constituting upto 65% but not less than 51% of the issued and paid up Equity Share Capital. EID Parry also agreed to acquire the balance 1,28,31,880 - 8% non-cumulative redeemable preference shares of Rs11 each at par.
Consequent to the above, EID Parry will be making an open offer to the shareholders of GMR Industries to acquire up to 39,92,342 equity share of Rs10 each, representing in aggregate 20% of the fully paid up equity capital at a price of Rs110.69 per fully paid equity share in accordance with SEBI regulations.