Bajaj Electricals Ltd. has announced that it is going to purchase 19.78% equity shares of its subsidiary Nirlep Appliances Pvt Ltd. after getting its shareholders' nod.
The shares will be acquired at a face value of Rs 100 each "as held by the continuing shareholders of Nirlep," Bajaj Electricals said in a statement.
The share purchase is part of the second tranche to acquire the remaining shares of Nirlep, under a deal inked in 2018 to fully acquire the cookware brand.
"The Continuing Shareholders have a 'put option' to call upon the Company to acquire their aforesaid 19.78% equity shares in Nirlep or part thereof at any time on or after the third anniversary of the Closing Date (as defined under SPSA) and up to 60 (sixty) business days from such date at an Option Price," the statement read.
It further added that the "continuing shareholders have exercised their put option on September 1, 2021, to call upon the company to acquire, or caused to be acquired through its Nominee Shareholders, 147,061 (19.78%) equity shares of face value of Rs.100/- each as held by the Continuing Shareholders in Nirlep ("Option Shares"), at an option price, subject to the terms of SPSA."
On September 1, 2018, as the first tranche, Bajaj Electricals had completed transactions towards the acquisition of 79.85% equity share capital of Nirlep, for a cash consideration of Rs 30.70 crore, whereas 0.36% equity share capital of Nirlep was acquired by the nominee shareholders of the company.
Bajaj Electricals had in 2018 bought Nirlep Appliances for around Rs 80 crore, which includes equity and debt.
The deal was to be completed in two tranches. In the first tranche, the company said 80 per cent of shares will be acquired within 60 days from June 15 when the acquisition was announced, and in the second tranche, the company "had a right to exercise the call option to acquire remaining 20 per cent of shares any time after closing date," Bajaj had said.
Subsequent to the proposed acquisition, Nirlep would become a wholly-owned subsidiary of Bajaj Electricals.
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