French firm's Indian unit buys Prabhat's dairy business for Rs 1,700 crore

Business Standard French firm's Indian unit buys Prabhat's dairy business for Rs 1,700 crore

Prabhat will now focus on its cattle field and animal genetics business with the sale of its dairy business

Companies News: Global dairy major Lactalis will buy Mumbai-based Prabhat Dairy, a bulk producer of milk and dairy products, in its third acquisition in India.

Prabhat told the stock exchanges on Monday that Lactalis’s Indian subsidiary Tirumala Milk Products was acquiring its dairy business for Rs 1,700 crore, which is 1.17 times its FY18 sales of Rs 1,442 crore. The transaction is subject to mandatory approvals. The company did not specify a timeline for completion of the deal, but analysts expect it to be done in the next six months.

At Monday’s closing price of Rs 93.05 per share, Prabhat’s market capitalisation stands at Rs 909 crore.Kotak Mahindra Capital Company was the financial advisor to Prabhat on the deal. Veritas acted as the legal advisor.

Besides the dairy business, the transaction also involves sale of 100 per cent shareholding in Sunfresh Agro Industries, a subsidiary of Prabhat, via a share purchase agreement, the company said...Read More