Future Consumer Ltd announced on Friday that it has entered into an agreement to sell off its investment held in comics publisher Amar Chitra Katha Private Limited worth Rs 13.62 crores.
"In furtherance to the aforesaid and to give effect to the same, the Company has entered into definitive agreements on 5th May, 2022, to dispose-off part of its investments held in ACKPL aggregating to 3,61,290 equity shares constituting to 18.58 per cent of total paid-up share capital of ACKPL to the respective purchasers, in one or more tranches, subject to such further consents and approvals that may be required and achieving completion of conditions specified under respective agreements," noted Future Consumer in an official statement.
Upon completion of sale of shares, Amar Chitra Katha shall cease to be a subsidiary of Future Consumer, it added.
Future Consumer clarified that its investment in Amar Chitra Katha was solely held in Compulsorily Convertible Debentures as of March 31, 2021.
"The investments in Compulsorily Convertible Debentures of ACKPL were held at cost, which accounted for 5.42 per cent of the net worth of the Company on that date," it further added.
Future Consumer explained that in terms of the provisions of respective Share Purchase Agreement(s) the sale of shares is expected to be completed in three tranches on or before April 30, 2023.
"The aggregate consideration to be received from the sale of investments held in ACKPL will be Rs. 13.62 crore," it added.
The firm noted that the buyers are Ramanaidu Daggubati and Spirit Media Private Limited. Ramanaidu Daggubati is a prominent film producer and former Member of Parliament. He is a director of Spirit Media.
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