Alpen Capital advises Amrit Banaspati on the sale of its Oil and Fat Business to Bunge India
New Delhi/Mumbai, 22nd December, 2011
Alpen Capital India Private Limited acted as the Financial Advisor to Amrit Banaspati for selling its Edible Oil and Fats Business to Bunge India. Bunge India Private Limited, a wholly owned subsidiary of Bunge Limited (NYSE: BG) ("Bunge India") entered into definitive agreements with Amrit Banaspati and Amrit Corp. Limited ("Amrit Corp") as a part of its expansion plans in North India. The transaction, which is subject to approval by shareholders of Amrit Banaspati and Amrit Corp, has been unanimously approved and recommended by the Boards of Directors of both companies. The transaction is also subject to regulatory approvals and other customary closing conditions.
The acquisition includes Amrit Banaspati's manufacturing facility at Rajpura in the state of Punjab, rights to its brands and trademarks, its sales and distribution business and the transfer of employees pertaining to its edible oils and fats business to Bunge India. Bunge India would also acquire rights to GAGAN, the vanaspati brand held by Amrit Corp which is currently licensed to Amrit Banaspati.
Amrit Banaspati’s transfer/sale of the Edible Oils Business to Bunge is a lump sum Consideration of Rs. 220.72 Crores subject to the Adjustment to Consideration as provided in the Agreement. Besides the Consideration, the secured and unsecured loans of the Company amounting to Rs. 40.60 crores will be taken over by Bunge as part of the slump sale.
In addition, Bunge will also purchase the "Gagan" trademark from Amrit Corp under a separate Deed of Assignment for a total consideration of Rs. 104.50 crores.
"We are pleased to conclude this transaction with Alpen Capital India who acted as exclusive advisors on this mandate. Bunge is a respected name in both the Indian and global markets. It is known for its high quality products, and I am very happy that the products and brands of our company, which have gained a reputation for quality and service over the past decades, will continue to serve our valued consumers in the capable hands of Bunge", says N.K Bajaj, Chairman and Managing Director, Amrit Banaspati.
"All brands under the Amrit Banaspati umbrella, coupled with capable employees and a strong distribution network, open up opportunities for synergistic collaboration with Bunge India, creating incremental value for the combined operations. The addition of this business, along with our commitment to quality, food safety, innovation, risk management and efficiency through our global supply chain, will position Bunge well to be a long-term industry leader", says Adhiraj Sarin, Managing Director, Bunge India.
"Alpen Capital is delighted to be the Financial Advisor on this complex transaction. We value our relationship with Amrit Group and are happy to have assisted them with their business strategy", says Rohit Walia, Executive Vice Chairman & CEO, Alpen Capital Group.