ADIA, Brookfield, KKR and TPG to invest Rs4,040 crore in UPL's pure play platforms

21 Oct 2022 , 02:09 PM

UPL Limited today announced a strategic corporate realignment by establishing unique ‘pure-play’ business platforms – with the goal of unleashing the development potential of each of these platforms through increased focus (driven by specialised and committed teams) and efficient resource allocation.

The realignment will create wealth for UPL shareholders by allowing for the fair value recognition of the different pure-play platforms.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Brookfield, and TPG plans to invest Rs1,580 crore (US$ 200 million) in UPL SAS – India Agtech Platform for a 9.09% interest at an equity valuation of Rs17,380 crore (US$ 2.2 billion).

KKR will invest US$ 300 million (Rs2,460 crore) in ‘Advanta Enterprises – Global Seeds Platform’ for a 13.33% interest at an equity valuation of US$ 2.25 billion (Rs18,450 crore).

Abu Dhabi Investment Authority’s (ADIA) wholly-owned subsidiary and TPG will acquire a 22.2% stake in UPL Cayman, a Global Crop Protection Platform (ex-India).

These are different transactions for which separate agreements have been reached following negotiations between each of the investors and UPL Ltd.

At around 2.13 PM, UPL was trading at Rs701.95 down by 1.62% from its previous closing of Rs713.50 on the BSE. The scrip touched intraday high and low of Rs723.95 and Rs697 respectively.

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