EID Parry acquires 65-per cent stake in GMR Industries

EID Parry Ltd, part of the Chennai-based Murugappa group, yesterday entered into a 'definitive agreement' with GMR Holdings Pvt Ltd to acquire a majority stake in the sugar manufacturer GMR Industries, the company informed the BSE today.

As per the deal, EID Parry will acquire up to 129,75,110 but not less than 101,80,471 equity shares of GMR Industries at a price of up to Rs.57.35 per equity share, constituting up to 65 per cent but not less than 51 per cent of the issued and paid up equity share capital of GIL.

The company has also agreed to acquire the entire 128,31,880, 8 per cent non-cumulative redeemable preference shares of Rs.11 each at par.
 
EID Parry will then make an open offer to the shareholders of GIL to acquire up to 39,92,342 equity shares of GIL representing in aggregate 20 per cent of the paid up equity capital of GMR at a price of Rs.110.69 per share.

According to analysts, the total valuation will come to about Rs115 crore.

''The deal with GMR consolidates EID Parry's position as one of the leading sugar manufacturers in cane-rich areas of North Karnataka and marks its entry into Andhra Pradesh,'' said a joint press release from EID Parry and GMR.

The release said that the deal was in line with GMR group's ''overall strategy to divest its non-core assets and focus on its infrastructure and energy business.''