Dodla Dairy Ltd. on Friday, July 11, said its board of directors has approved the acquisition of HR Food Processing Pvt Limited for ₹271 crore.The company, in an exchange filing said, its board approved the acquisition of 100% of the issued and paid-up share capital of HR Food Processing Private Limited (OSAM) during its meeting on Friday.
The proposed transaction is at an enterprise value of ₹247.2 crore plus net cash of ₹23.8 crore in the target company, it said. With this, it has entered share purchase agreements and other transaction documents/agreements with the existing promoters and shareholders of HR Food, it said. This is a fully cash transaction and is expected to be completed in one to two months from the date of signing the share purchase agreements and other documents.
Upon successful completion of the acquisition, HR Food will become a wholly-owned subsidiary of Dodla Dairy Ltd.HR Food Processing Private Limited, incorporated under the provisions of the Companies Act, 1956. The company operates under the brand name Osam in Jharkhand and Bihar.
The proposed transaction is at an enterprise value of ₹247.2 crore plus net cash of ₹23.8 crore in the target company, it said. With this, it has entered share purchase agreements and other transaction documents/agreements with the existing promoters and shareholders of HR Food, it said. This is a fully cash transaction and is expected to be completed in one to two months from the date of signing the share purchase agreements and other documents.
Upon successful completion of the acquisition, HR Food will become a wholly-owned subsidiary of Dodla Dairy Ltd.HR Food Processing Private Limited, incorporated under the provisions of the Companies Act, 1956. The company operates under the brand name Osam in Jharkhand and Bihar.
Dodla Dairy shares were trading flat at ₹1,414.4 apiece at 1.45 pm. The stock has gained 12.9% this year, so far.
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