Adani Infra To Buy 30.07% Stake In PSP Projects For Rs 685 Crore; Files For Open Offer
Adani Infra's acquisition involves a five-year lock-in period on existing stakes and rights for first refusal post-sale.
PSP Projects Ltd, a diversified construction firm, said it has entered into a share purchase agreement with Adani Infra (India) Ltd for the sale of its 30.07% stake.
As per the disclosure, Adani Infra will acquire the stake from PSP Project's one of the promoters, Pralhadbhai S Patel, for around Rs 685 crore.
Post the completion of the transaction, Adani Infra will have to make an open offer for an additional stake in the company.
Post the completion of the transaction and the open offer, both companies will have joint control over PSP Projects along with the existing promoter group, the company said.
The existing promoter group holds 60.14% of the paid-up equity capital of PSP Projects. Both the promoter group of PSP Projects and Adani Infra, as long as they hold over 20% stake in the company, will have the right to appoint two non-independent directors on the board, and with the stake between 10-20%, they can have one independent director each on the board of PSP Projects.
Also, there will be a lock-in period of five years on the sale of existing stakes, and post that, the companies will have a right of first refusal if the stake sale happens.
The company involved in multidisciplinary construction activities, including government, industrial, and residential segments, reported a drop in net profit in the second quarter of the current year to Rs 14.90 crore compared with Rs 52 crore a year ago.
Adani Infra Makes An Open Offer
PSP Projects, in a separate announcement, said Adani Infra has filed for an open offer to purchase 1.03 crore shares at a price of Rs 642.06 a piece from the public shareholders.
The price is at a discount to PSP Project's Tuesday closing price of Rs 671.75.
Adani Infra will have to invest around Rs 661.76 crore for the open offer and will take its proposed shareholding in PSP Projects to up to 43.07%, it said. The company will buy 1.19 crore shares for its 30.07% stake, and including the open offer, it will buy 1.70 crore shares of PSP Projects.
