Mahi Madhusudan Kela, Authum Investment To Acquire Stake In Prataap Snacks

Alpana Sanjay Dangi's Authum Investment & Infrastructure Ltd. and Mahi Madhusudan Kela, have entered into an agreement to buyout the private equity players in Prataap Snacks, the owner of snack brand Diamond.

Alpana Dangi is the wife of well known investor Sanjay Dangi and Mahin Madhusudan Kela is the wife of Madhusudan Kela.

The existing promoters, Peak XV (erstwhile Sequoia India), sold 46.85% stake for Rs 846.5 crore at Rs 746 apiece at a steep discount to Thursday's close.

The new investors will also make an offer for 26% stake for the minority shareholders at Rs 864 apiece.

Prataap Snacks listed on the stock exchanges seven years ago at Rs 938 apiece. The acquisition price and open offer price is at a steep discount to the issue price.

The company hit an all time high of Rs 1,458.70 apiece in April 2018.

The open offer seeks to purchase up to 62.98 lakh fully paid-up equity shares, each with a face value of Rs 5, from the company’s public shareholders.

If the open offer is successful, the total deal consideration will go up to Rs 1,390 crore, according to an exchange filing.

Authum and Kela will acquire 46.85% stake in the snacks manufacturer from its private equity promoters. They entered into a share purchase agreement on Thursday, with sellers, including Peak XV Partners Growth Investment Holdings I and II, and Sequoia Capital GFIV Mauritius Investments.