Nusli Wadia Group is set to buy Groupe Danone`s 50% stake in biscuit major Britannia Industries with a committed USD 200 million funding from ICICI Bank, reports Economic Times. The group will buy Danone`s 50% equity in the UK incorporated holding company, Associated Biscuits International Holding (ABIH), backed by a five-year loan.
The deal will end two-year-old acrimonious shareholder dispute between Wadias and Danone, with the French food giant walking out of a decade-long joint venture to chart independent course in India. ABIH will remain as Britannia`s holding entity after the transaction. ABIH holds 50.9% stake in India`s leading biscuit company by value. As per the sources, Wadias were raising debt at 700 bps over the three month London inter bank offered rate (Libor) that is around 4.75%. The loan will be backed by cash flows and collateral securities, which may include Wadia Group`s share in Britannia. The development comes even as most banks are cutting back on lending in the wake of the global financial turmoil. Wadias were discussing fund raising with a European bank and ICICI, but appears to have decided to go ahead with the latter. It is believed that ICICI Bank is also the advisor to the transaction. Source: My Iris To keep a lamp burning, we have to keep putting oil in it --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
