Godrej Agrovet Ltd. announced on Tuesday that it would acquire the remaining 48.06% stake in Creamline Dairy Products Ltd. for Rs 930 crore.
The move will make the Godrej Jersey brand owner, which is one of the leading private dairy companies in south India, Godrej Agrovet's wholly owned subsidiary, according to the company's exchange filing.
The decision follows the approval by the Godrej Group company's board on Tuesday. Godrej Agrovet stated that the objective of the acquisition is to consolidate the company's position in Creamline Dairy Products.
The company will conduct the acquisition through a share purchase agreement and pay the entire amount in cash for the remaining stake. Post acquisition, Godrej Agrovet's shareholding in Creamline Dairy Products will increase from 58.81 lakh shares to 1.13 crore.
The acquisition of the Hyderabad-based milk procurement and processing company is expected to be completed on or before Sept. 30, 2025, the disclosure added.
Creamline Dairy Products is a related party of the company, as Godrej Agrovet is its promoter and has an interest in the entity being acquired. However, it added that the acquisition is done on an arm's length basis.
The transaction is based on valuation report obtained for the purpose and hence on arm's length basis, the filing added.
In the financial year ended March 31, 2024, Creamline Dairy Products' turnover stood at Rs 1,540 crore. For the third quarter of the current financial year, Godrej Agrovet has posted a net profit of Rs 111.5 crore, a 21% rise from the Rs 91.8 crore profit that it had reported in the same period the preceding year.
The company's revenue for the quarter increased by 4.5% to Rs 2,449.6 crore. In comparison, the company had garnered Rs 2,345.2 crore revenue in the similar period last fiscal.
Shares of Godrej Agrovet closed 1.35% lower at Rs 735.65 apiece on the BSE, compared to a 0.02% decline in the benchmark Sensex.
(With PTI inputs)
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