Adani Infra (India) Limited has announced an open offer to acquire up to 1,03,06,866 equity shares of PSP Projects Limited, marking a significant move as part of a broader strategic transaction. The offer, which represents 26% of PSP Projects’ voting share capital, is priced at INR 642.06 per share, valuing the total deal at approximately INR 661.76 crore.
This acquisition is a key component of the ongoing transaction between Adani Infra and PSP Projects, as per the Share Purchase Agreement (SPA) entered into by both parties. Under the SPA, Adani Infra is set to acquire a 30.07% stake in the construction firm from one of the promoters, Mr. Prahaladbhai S. Patel, who is also a party to the deal.
The open offer is triggered by the planned transfer of the shares, ensuring that Adani Infra will gain joint control of PSP Projects along with the existing promoters. This move is in accordance with the Securities and Exchange Board of India (SEBI) regulations, particularly the Substantial Acquisition of Shares and Takeovers (SAST) regulations.
Adani Infra, part of the prominent Adani Group, has committed to paying the open offer consideration in cash. The deal also involves a Shareholders’ Agreement (SHA) governing the management of PSP Projects post-acquisition.
PSP Projects has disclosed that the offer price is in line with SEBI regulations and is higher than the average market price of the company’s shares. The public shareholders of PSP Projects are invited to tender their shares, with the offer running in accordance with SEBI’s guidelines on open offers.
This development could significantly alter the landscape for PSP Projects, with Adani Infra’s proposed acquisition potentially leading to further expansion and operational restructuring within the construction sector.
In a statement, the Board of Directors of PSP Projects acknowledged the open offer and confirmed that the public announcement was filed with the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE). Shareholders are advised to review the formal offer documents, which will be detailed further in a subsequent announcement.
The completion of the open offer and the underlying transaction is contingent on receiving the necessary regulatory approvals, including from the Competition Commission of India.
