Jain Irrigation Methods on Tuesday mentioned that its international irrigation enterprise will probably be merged with Temasek-owned Rivulis in a cash-and-stock deal price Rs 4,200 crore. The mixed entity may have a income of $750 million and would be the second largest international irrigation and local weather chief.
Whereas Temasek will maintain 78% within the merged entity, Jain Worldwide Enterprise may have a 22% stake price Rs 1,300 crore (in line with the deal worth). The money proceeds will probably be utilized by Jain Irrigation to scale back its consolidated debt by round 45% or Rs 2,664 crore, Anil Jain, managing director, Jain Irrigation, mentioned. Round Rs 200 crore from the sale proceeds will come to the India operations.
Jain’s abroad debt contains all of the restructured abroad bonds to the tune of $225 million and full debt of abroad working firms, Jain mentioned. Jain Irrigation can even get to launch its company assure of Rs 2,275 crore to bondholders and lenders.
The deal is anticipated to shut in three to 6 months and debt repayments could be made after closing the deal, Jain mentioned.
Jain may have consultant administrators and observer on the board of the merged firm. It’s going to even have a long-term provide settlement with the merged entity.
Jain Irrigation’s complete debt as of March 31, 2022, stood at Rs 6,000 crore. Its India debt was at `3,200 crore, of which Rs 1,000 crore was NCDs and `2,200 crore of working capital and different small debt.
Temasek was an investor in Jain Irrigation between 2005 and 2010-11, and each companions would discover working collectively within the Indian market and this might be within the type of investments in India, Jain mentioned.