Advent International, a global private equity investor, has signed a definitive agreement with Shapoorji Pallonji Group (SPG) to acquire a majority stake in Eureka Forbes Ltd. The transaction values Eureka Forbes at an enterprise value of Rs 4,400 crore, subject to closing adjustments.
As part of the scheme, Eureka Forbes Ltd, a 100 per cent subsidiary of Forbes & Company, will be demerged into a standalone company and then listed on the BSE. After the listing of EFL, US-based Advent will purchase up to 72.56 per cent of the company’s then outstanding stock on a fully diluted basis from SPG. Advent will thereafter make an open offer in compliance with applicable regulations. The transaction is subject to closing conditions and receipt of relevant statutory and regulatory approvals.