Lawstreet Journal

Wadia Group Expected to Sell Up To 5% In Britannia Via Block Deals

Lawstreet Journal 8 Jun 2020 7:16pm

Image courtesy: Lawstreet Journal Business Wadia Group Expected to Sell Up To 5% In Britannia Via Block Deals

Wadia Group is expected to sell up to a 5 percent stake in India’s largest biscuit maker, Britannia Industries, to raise Rs 4,000 crores. This is done to take advantage of a spike in share prices since March when Indian markets had slumped to a record low.

The organization is likely to sell shares through secondary block deals in open markets, several sources with knowledge of the matter have revealed. Wadia group is expected to infuse these funds into its aviation firm GoAir and textile and real estate company Bombay Dyeing.

Wadias own Britannia through a complex structure. Wadia Group and France’s Danone held equal stakes in Britannia Industries through joint ownership of Associated Biscuits International. Danone and Wadia Group each own half of Associated Biscuits, which holds 50.96 percent of Britannia, giving each partner control of 25.48 percent of the biscuit maker. In 2009, Wadia Group had bought out Danone from the biscuit joint venture.

Goldman Sachs bank has been engaged to run a process, but two other banks are also expected to join as book runners.

“Marketing roadshows are planned. We have been seeing very good interest in strong domestic business, which can play a key role in India’s domestic consumption story,” revealed one of the sources mentioned above. “We have seen a sharp surge in share prices, and this can also be capitalized for the growth of other businesses as well”, he said further. 

 

Varun Berry, managing director of Britannia, has said that he was not aware of any such move. 

Shares of… Continue Reading...


Tagged: Wadia Group  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
Featured Members view all

New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.