Jagsonpal Pharma stock skyrockets 8% as Infinity Holdings Group plans to acquire majority stake in the company

22 Feb 2022 , 09:17 AM

Jagsonpal Pharmaceuticals Ltd has entered into a shareholders’ agreement (“SHA”) with the Seller Group (comprising of Aresko Progressive Private Limited (acting in capacity as a trustee of the Aresko Progressive Trust and as the representative partner of J&P Investments Partnership) and Rajpal Singh Kochhar) and the Purchaser Group (comprising of Infinity Holdings, Infinity Holdings Sidecar I and Infinity Consumer Holdings (collectively, the “Acquirers”)), to record their respective rights and obligations in relation to the Company.

On Tuesday early morning trade, Jagsonpal Pharmaceuticals was trading at Rs220.90 per piece higher by 7.94% on Sensex.

The terms of the SHA are proposed to be effective from the date of consummation of the sale of 43.73% of shareholding and voting rights of the Company by the Seller to the Acquirers under the terms of the share purchase agreement dated 21 February 2022 executed between them.

As per regulatory filing, on February 21, 2022, the Purchaser Group and the Seller Group have entered into a share purchase agreement (“SPA”) for acquisition and sale of 1,14,55,500 equity shares, constituting 43.73% of the voting share capital of the Company, subject to the satisfaction of conditions mentioned in the SPA.

Further, the Purchaser Group would also be making an open offer to acquire equity shares of the Company representing 26%.

Pursuant to the open offer and the transactions contemplated in the SPA, the Purchaser Group shall become the promoters of the Company and the Seller Group will continue to also remain classified as ‘promoters’ of the Company and will hold a significant minority with certain minority interest protection rights, said Company.