CCI Approves Acquisition of 72.89% Voting Shares in Prataap Snacks Limited
The Competition Commission of India (CCI) has approved the acquisition of 72.89% voting share capital in Prataap Snacks Limited by Authum Investment & Infrastructure Limited and Ms. Mahi Madhusudan Kela. This strategic move aims to strengthen the snack fo
CciPrataap Snacks LimitedAuthum InvestmentNbfcAcquisitionsReal EstateJan 01, 2025
Mahi Madhusudan Kela.
This significant acquisition marks a pivotal step in the snack food industry, promising to enhance market competition and consumer choices.
Authum Investment & Infrastructure Limited (Authum), a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI), is known for its core business operations.
These operations include investing in long-term equity across both listed and unlisted companies, real estate investments, lending services, and structured credit.
ADF Foods Limited, a public listed company, is identified as an affiliate of Authum under the Competition (Criteria of Combination) Rules, 2024.
ADF Foods is primarily engaged in manufacturing and distributing processed ready-to-eat frozen foods.
Prataap Snacks Limited (PSL), established in 2009, is a listed company that specializes in the snack food segment.
The company's product line includes a wide range of extruded snacks, potato chips, and other snack items.
PSL’s brands, 'Yellow Diamond' and 'Avadh,' are well-known in the market.
The proposed transaction is structured in two main parts
1.
Acquisition by Authum Authum will acquire 42.33% of the voting share capital in PSL through a Share Purchase Agreement with the Sellers, which include Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investments II, and Sequoia Capital GFIV Mauritius Investments.
2.
Acquisition by Ms.
Mahi Madhusudan Kela Ms.
Kela will acquire 4.54% of the voting share capital in PSL from the same Sellers.
Together, these acquisitions will result in Authum and Ms.
Kela holding a combined total of 46.87% of the voting share capital in PSL.
Additionally, Authum and Ms.
Kela have publicly announced an Open Offer to the public shareholders of PSL for the acquisition of fully paid-up equity shares representing 26.01% of the voting share capital of PSL.
This will bring the total acquisition to 72.89% of the voting share capital in PSL.
Post-acquisition, Authum will become the promoter of PSL, and Ms.
Kela will join the promoter group.
The Sellers, who were previously part of the promoter and promoter group, will cease to hold these positions under the Share Purchase Agreement.
This strategic move is expected to bolster PSL’s market position, drive innovation, and enhance product offerings.
The CCI’s approval ensures that the transaction aligns with competition laws and promotes a healthy business environment in the snack food sector.
Detailed order of the Commission will follow, providing further insights into the decision-making process and the terms of the approval.
Information on Authum Investment & Infrastructure Limited
Authum Investment & Infrastructure Limited is a prominent NBFC registered with the Reserve Bank of India.
The company is known for its diversified portfolio, which includes investments in listed and unlisted companies, real estate, lending services, and structured credit.
Authum has a strong track record of strategic investments and has been instrumental in fostering growth in various sectors.
ADF Foods Limited, a public listed company engaged in the manufacturing and distribution of processed ready-to-eat frozen foods, is identified as an affiliate of Authum under the Competition (Criteria of Combination) Rules, 2024.
Frequently Asked Questions
What is the percentage of voting share capital in Prataap Snacks Limited being acquired?
The proposed acquisition involves 72.89% of the voting share capital in Prataap Snacks Limited.
Who are the main acquirers in this transaction?
The main acquirers are Authum Investment & Infrastructure Limited and Ms. Mahi Madhusudan Kela.
What are the primary services provided by Authum Investment & Infrastructure Limited?
Authum Investment & Infrastructure Limited provides services such as investment in listed and unlisted companies, real estate investments, lending services, and structured credit.
What are the popular brands under Prataap Snacks Limited?
Prataap Snacks Limited's popular brands include 'Yellow Diamond' and 'Avadh'.
What is the significance of the CCI's approval in this acquisition?
The CCI's approval ensures that the transaction aligns with competition laws and promotes a healthy business environment, allowing for continued growth and innovation in the snack food sector.
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