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Advent International To Acquire 68% In DFM Foods; Launches Open Offer For 26% Stake

The subsidiary of U.S.-based private equity firm Advent International Corporation will acquire DFM Foods for Rs 852 crore.



A customer hands an Indian ten rupee banknote to a snack vendor at a roadside stall in the Dharavi slum area of Mumbai (Photographer: Dhiraj Singh/Bloomberg)
A customer hands an Indian ten rupee banknote to a snack vendor at a roadside stall in the Dharavi slum area of Mumbai (Photographer: Dhiraj Singh/Bloomberg)

AI Global Investments (Cyprus) PCC Ltd., a subsidiary of U.S.-based private equity firm Advent International Corporation, will acquire DFM Foods Ltd. for Rs 852 crore, the snack maker said in its exchange filing on Monday.

AI Global Investments will get 3.4 crore shares, or 67.9 percent stake, in the snack maker from its promoters, and existing investors—WestBridge Crossover Fund and Jwalamukhi Investment Holdings, the filing said.

The deal will reduce the promoters’ stake to zero from 38.27 percent currently, it said. West Bridge Crossover Fund and Jwala Mukhi Investments will also exit fully from the company by selling 14.92 percent and 9.93 percent stake, respectively.

To comply with the market regulator’s guideline, AI Global Investments also made an open offer for 1.3 crore shares, or 26 percent of the voting share capital, at Rs 249.5 apiece, aggregating to Rs 326.1 crore, according to the exchange filing. The offer price is at 9 percent discount from its current market price.

DFM Foods has risen 33.5 percent on a year-to-date basis compared to Nifty 500 Index’s 2.15 percent fall during the same period, as per Bloomberg data.