Britannia Industries, BDPL, and Bel SA form JV for sale of cheese products; stock rises ~2%
India Infoline News Service |
29 Nov, 2022 |
Britannia Industries Limited informed that it has entered into a Joint Venture Agreement (JVA) with Bel SA, France, and Britannia Dairy Private Limited (BDPL) on November 29, 2022, for the development, manufacturing, marketing, distribution, trading, and selling, etc., of cheese products. The JV will target the Indian markets along with some other countries.
As per the terms of the JV, Britannia plans to sell and transfer 49% of its stake in its wholly-owned subsidiary, BDPL, to Bel SA. The transfer will be in compliance with the terms of the Share Purchase Agreement entered between Britannia and Bel on November 29, 2022.
Upon completion of the agreement, Bel SA will become the legal and beneficial owner of 49% equity share capital of the BDPL. Britannia Industries shall continue to hold the remaining 51% stake in BDPL.
Britannia highlighted that resultantly, BDPL will become a Joint Venture company of Britannia and Bel SA in India. The JV intends to carry on the cheese business in India.
BDPL will allot the shares to both companies as per the agreement. The consideration has been fixed at Rs214.90 crore for Britannia, and Rs206.50 crore for Bel SA.
Currently, BDPL only engages in the Cheese business which includes marketing, trading, and selling of cheese products. During FY 2021-22, BDPL has a turnover of Rs340 crore, equalling about 2.4% of the consolidated sales of Britannia Industries.
At around 2.41 PM, Britannia Industries was trading at Rs4,278.60 per piece, 1.58% from its previous closing of Rs4,212.15 on the BSE. The scrip touched intraday high and low of Rs4,300.80 and Rs4,224.30 respectively.
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