Authum Investment & Infrastructure Ltd. has announced an open offer to acquire up to 26.01% of the equity share capital of Prataap Snacks Ltd. The open offer aims to purchase 62,98,351 shares at a price of ₹864 per share, totaling approximately ₹544.18 crore, assuming full acceptance from shareholders. This strategic move comes after Authum recently signed a Share Purchase Agreement (SPA) to acquire a 46.87% stake in Prataap Snacks, valued at a substantial ₹846.60 crore.
The open offer, if fully subscribed, would increase Authum’s shareholding in Prataap Snacks to up to 72.89%. This would effectively make Authum the majority stakeholder in the company, providing them with a significant influence over the operations and strategic direction of Prataap Snacks. The acquisition is structured in compliance with the Securities and Exchange Board of India’s (SEBI) regulations for substantial acquisition and takeovers (SAST).
Prataap Snacks is a notable player in the packaged food industry, and this acquisition by Authum signifies a focus on increasing their footprint in the market. The proposed offer price represents a premium over the current trading price of the shares, indicating confidence in Prataap Snacks’ business potential and value. This move aims to align Authum’s strategic investment interests while also enhancing shareholder value for Prataap Snacks through potential synergies and growth opportunities.
Shareholders of Prataap Snacks will have the opportunity to participate in the open offer, and this development is expected to play a significant role in reshaping the company’s ownership structure and future growth prospects.