The deal is valued at ₹1,403 per equity share, aggregating upto ₹1,379.68 crore
Crompton Greaves Consumer Electricals has announced that it acquiring upto 55 percent stake of domestic appliances maker Butterfly Gandhimathi Appliances.
The deal is valued at ₹1,403 per equity share, aggregating upto ₹1,379.68 crore. It will also acquire certain Butterfly trademarks in allied and cognate classes from promoter group entities for a consideration of ₹30.38 crore.
“Crompton will launch the mandatory open offer to the public shareholders of Butterfly, for acquiring upto 26% stake in Butterfly at a price of ₹1,433.9 per equity share, aggregating upto ₹666.57 crore; for an aggregate total consideration of upto INR 2,076.63 crore,” the company announced in an exchange filing.
The transaction will accelerate Crompton’s long-term strategic goal of becoming a leading player in the small domestic appliances segment.
Further, Butterfly’s complementary product portfolio coupled with scale and channel synergies will drive robust revenue growth and profitability, the company said in a release,
The transaction will be subject to completion of customary closing conditions and is expected to be financed through a mix of internal accruals and debt.