Jubilant FoodWorks acquires 40% stake in Roadcast Tech Solutions; stock slips ~1%

The said transaction is for an all-cash consideration of Rs14.98 crore.

July 29, 2022 9:25 IST | India Infoline News Service
Jubilant FoodWorks Limited informed that it has entered into a Share Subscription Agreement, Shareholders’ Agreement, and Share Purchase Agreement dated July 28, 2022, for the acquisition of a 40% stake in Roadcast Tech Solutions Private Limited.

This investment reflects the Company's intention to make strategic investments in promising start-ups and emerging businesses, and it is consistent with the Company's stated goal of building a multi-brand, multi-country food business powered by technology.

The said transaction is for an all-cash consideration of Rs14.98 crore.

The transaction shall be completed within a period of 60 days from the execution of the Share Subscription Agreement and Share Purchase Agreement, i.e., 60 days from July 28, 2022.

Company seeks to acquire a 25.71% stake in Roadcast by subscribing to 5,004 Compulsorily Convertible Series A Preference Shares (Series A CCPS) of the face value of Rs100 each.

Further, it will acquire a 14.29% equity stake from existing shareholders of Roadcast via purchase of 17 Compulsorily Convertible Seed Preference Shares (Seed CCPS) of the face value of Rs10 each, and 2,763 equity shares of the face value of Rs10 each.

At around 9.28 AM, Jubilant Foodworks was trading at Rs561.45 down by Rs4.65 or 0.82% from its previous closing of Rs566.10 on the BSE. The scrip opened at Rs575.20 and has touched intraday high and low of Rs577 and Rs554.25 respectively.

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