Advent to Buy Eureka Forbes for Rs. 4,400 crores

Private equity group Advent International has agreed to buy Eureka Forbes, the consumer durables flagship of the diversified Shapoorji Pallonji (SP) Group, for an enterprise value of Rs. 4,400 crores.

The sale will further help the leveraged 154-years-old construction and real estate conglomerate pare debt and focus on core operations. A subsidiary of listed Forbes & Co. Eureka Forbes will be spun off through a demerger process approved by the National Company Law Tribunal (NCLT) and listed. Upon listing, Advent will purchase up to 72.56% of the company’s outstanding stock on a fully diluted basis from SP Group. Advent will thereafter make an open offer in compliance with regulation. The transaction is subject to closing conditions and statutory and regulatory approvals.

The Forbes board met on Sunday to ratify the divestment. Its stock ended at Rs. 3,990 on the BSE Friday, down 1.6%, for a market capitalization of Rs. 5,140.23 crores. ET was the first to report online on September 9 that Advent was the frontrunner. S-ET

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