HOME > BUSINESS > Agrochem firms UPL, Advanta merge in share swap deal

Agrochem firms UPL, Advanta merge in share swap deal

upl

Boards of UPL Limited and Advanta Limited — two companies engaged in agriculture-related business — approved a merger of the two companies in a share swap deal.

According to the deal, each Advanta shareholder owning one equity share of the company will get 1 UPL share, plus 3 optionally redeemable convertible preference shares of par value Rs 10 each in UPL in case of residential shareholders.

UPL expects to achieve annual cost savings of Rs. 900 million through the merger and give it access to newer territories while providing enhanced coverage in existing markets. The combined entity will be better able to levere channel capabilities.

In case of shareholders based outside India, they will get 3 compulsorily convertible preference shares in UPL instead of the optionally convertible ones. On conversion, 471 preference shares to be converted into 10 equity shares of UPL.

In case of global depositary receipts, Advanta GDR holders holding will get 1.06 GDR in UPL for each one held.

As a result of all this, UPL will issue 77.45 million new equity shares of face value Rs 2 and 181.83 million new preference shares of face value Rs 10.

“The merger follows UPL’s philosophy of creation of sustainable Shareholder value through accelerated growth and simplified group structure,” said R D Shroff, Chairman of UPL.

“This is a significant step in our goal to be among the largest agrochemical + seed companies globally”

The deal will provide improved customer access through early and direct engagement.

It will also result in a larger product portfolio, economies of scale, efficiency, optimisation of logistic and distribution network and other related economies, the companies said.

“The combined business would also benefit from the resources strength to carry on consolidated operations through optimum utilization of resources, avoidance of duplication and better financial strength.”

Jai Shroff, Global CEO, UPL and Vice Chairman Advanta, said: “With this merger, UPL expands its product portfolio to cover the agri-value chain and provides UPL with an opportunity to engage directly with the farmers. Advanta benefits from the strong global distribution network of UPL and will be able to fast track its growth plans on the back of strong balance sheet of the combined entity”.

Follow ULTRA.news
XL Catlin to buy 20% of Mahindra Insurance Brokers Mahindra Finance said global insurance major XL Group will take a 20% stake in its subsidiary Mahindra Insurance Brokers Ltd, including the 15% currently held by LeapFrog Financial Inclusion Fund."XL Group will help support MIBL’s endeavours to increase insurance awareness a...
Bharti Airtel merges Ghana arm with Tigo of Millicom Bharti Airtel said it is merging its operations in the African nation of Ghana with the local unit of Millicom International Cellular."Under the joint agreement, Airtel and Millicom will have equal ownership (50:50) and governance rights in the combined entity, which will ha...
Tata Tele acquisition good for Bharti Airtel – Fitch Bharti Airtel Limited's (BBB-/Stable) announcement that it plans to acquire the consumer mobile operations of Tata Teleservices and Tata Teleservices (Maharashtra) Ltd (Tata Telecom business) is positive for the deal participants as well as the industry, Fitch Ratings said.B...
Tata Teleservices to merge mobile business with Bharti Airtel Bharti Airtel Limited, India’s largest telecommunications services provider and Tata, India’s leading conglomerate, today announced that they have entered into an understanding to merge Consumer Mobile Businesses (CMB) of TTSL and TTML into Bharti Airtel.The move is likely ...
Lupin buys US-based vaginosis drug maker for $150 mln Pharma major Lupin said that its US subsidiary, Lupin, Inc has acquired Symbiomix Therapeutics, LLC for a cash consideration of USD 150 million including a USD 50 million upfront and other time‐based payments.In addition, there are sales based contingent payments.Lupin h...
Reliance Infrastructure in talks to sell Mumbai power network to Adani Reliance Infrastructure said it has entered exclusive negotiations with Adani Transmission Limited for the sale of its power distribution business in Mumbai.The deal involves its integrated business of generation, transmission and distribution of power for Mumbai City, the A...
Crompton Greaves says no binding deal with Videocon on Kenstar acquisition Crompton Greaves, one of India's biggest electrical durables makers, said it has not executed any binding transaction documents with Videocon Industries on the acquisition of the Kenstar brand in India.Responding to a report in the Economic Times that said a binding offer at...
Future Retail to pay Rs 500 cr in stock, 155 cr cash for Hypercity Future Retail will pay most of the cost of its proposed Hypercity acquisition by issuing new shares, and only about a fourth will be paid in cash.The deal will put even more distance between Future, which operates chains such as Big Bazaar and Central, and other players in I...
Wipro acquires 25-year-old US-based design consultancy Cooper Wipro said it has agreed to acquire US-based design consultancy Cooper, without disclosing the financial details."Headquartered in San Francisco, Cooper has been a leading brand in interaction design, UX and professional design education for more than 25 years," the Indian I...
RCom withdraws scheme for sale of tower co to Brookfield Reliance Communications said it has filed with the National Company Law Tribunal to withdraw its demerger scheme for its tower assets.The move follows the cancellation of its plans to merge with Aircel Cellular due to regulatory issues.The company Anil Ambani-led company...
Apollo Tyres refutes Economic Times report on Kumho acquisition Apollo Tyres said it 'strongly denies' the Economic Times report that it was trying to acquire South Korea's No. 2 tyre maker Kumho Tire for $900 million."Apollo Tyres strongly denies the story headlined 'Apollo Back in Kumho Race as Geopolitics Sours China Deal’ that appear...
Is Reliance Jio about to acquire Den Networks? Reliance Industries refused to deny or confirm media reports about its telecom unit Jio being in talks to acquire cable operator Den Networks.Shares of Den Networks, one of India's largest cable networks, are up 6.2%, having opened higher on the news."We are unable to co...
Tata Capital sells Travel & Forex business to Thomas Cook Thomas Cook, the travel services company, said it had purchased the forex business of Tata Capital, Tata Capital Forex, in its entirety."We would like to inform you that the Board of Directors of the Company at their Meeting held on 25th September, 2017, approved the acquisi...
NDTV officially denies sale to Ajay Singh India's oldest English television news broadcaster NDTV officially denied that it has been sold to Ajay Singh, the promoter of SpiceJet."We wish to inform you that the promoters of the Company have not entered into any agreement for sale of their stake in the Company to any ...
Stock Exchange seeks clarification from NDTV on Ajay Singh’s stake-buy NDTV Promoter Prannoy Roy with former PM Manmohan SinghThe National Stock Exchange has again sought a clarification from NDTV after the Indian Express reported that SpiceJet promoter Ajay Singh was now the biggest shareholder in the media company.UPDATE: NDTV has denied ...
Cyient sells stake in Pratt & Whitney JV IT company Cyient said it signed an agreement to divest its 49% equity ownership in IASI, its joint venture with Pratt & Whitney, as it exits its IT services business.The Indian company will get $1.8 mln for the stake from United Technologies Corporation, the buyer, after a...
Infosys completes acquisition of London-based Brilliant Basics Infosys said it completed the acquisition of Brilliant Basics, a London-based product design and customer experience company.The acquisition was first announced a month ago."Through this acquisition, Infosys further expands its worldwide connected network of Digital Stud...
IndusInd Bank enters merger talks with SKS Microfinance Bharat Financial Inclusion, formerly known as SKS Microfinance, said it has entered into exclusive discussion with IndusInd Bank on a potential "strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure."SKS Microfinance is...
South India still water-stressed despite decent monsoon Despite a decent monsoon season, water levels at storage facilities in India continues to be below those of last year as well as the 10-year average.Of particular concern is the situation in South India, only 39% of the total capacity of the reservoirs has been filled so far...
Escorts launches tractors with cabin, electric concept in India Escorts, which makes Farmtrac and Powertrac tractors in India, launched several new models today, including what it called India's first Electric & Hydrostatic concept tractor as well as high-end models with cabins and tier 4 emission norms compliant CRDi engines.These will ...