Agro Tech's Del Monte buy may trigger open offer
Agro Tech Foods' Rs 1,300- crore acquisition of Del Monte Foods is likely to trigger an open offer as the new shareholders' equity capital will surpass the stock held by the existing promoters, potentially altering the company's control dynamics, market experts said.
Agro Tech Foods announced the acquisition of a 100% stake in Del Monte Foods last month. It will buy a 40.71% stake from DMPL India and the remaining 59.29% from Bharti Entities. As part of the deal, Agro Tech Foods will issue a total of 13.3 million shares on a preferential basis.
Out of these, 7.9 million shares will be allotted to Bharti Entities, and 5.424 million shares to DMPL, at an issue price of Rs 975.5 per share.
In the past six months, shares of Agro Tech Foods have surged 38%, significantly outperforming the 8% gain in the Nifty and the 2% decline in the Nifty FMCG Index.
«New allottees (DMPL India and Bharti Entities) will together hold 35.35% equity capital, which is more than the equity that would be held by the existing promoters,» said proxy advisory firm Stakeholder Empowerment Services (SES).
Stock Trading
Technical Analysis Demystified: A Complete Guide to Trading
By — Kunal Patel, Options Trader, Instructor
Stock Trading
Commodity Markets Made Easy: Commodity Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Candlesticks Made Easy: Candlestick Pattern Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
ROC Made Easy: Master Course for ROC Stock Indicator
By — Souradeep Dey, Equity
