Godrej Agrovet to sell 20% stake for Rs 572 cr to Temasek
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Godrej Industries arm Godrej Agrovet Ltd (GAVL) today said it will sell 19.99 per cent stake in the company to Singapore-based investment company Temasek for Rs 572 crore and would utilise the proceeds for expansion.
Temasek has entered into a "definitive agreement to acquire a 19.99 per cent stake in GAVL for a consideration of Rs 572 crore", Godrej Industries said in a statement.
The funds would be a combination of primary and secondary investment with the primary investment intended to support GAVL's future expansion plans, it added.
HSBC acted as the advisor to the transaction.
GAVL has interests in animal feed, oil palm, agri-inputs and poultry businesses. It had posted a sales of Rs 2,460 crore in the 2011-12 fiscal. The company has 45 manufacturing facilities, a network of over 10,000 rural distributors/dealers, and over 2,000 employees.
GAVL Chairman Nadir Godrej said: "We welcome Temasek as a partner. We believe that their global credentials, knowledge of agribusiness and excellent track record will be beneficial to GAVL".
The company is aggressively expanding rural distribution, increasing our manufacturing capacities, and launching cutting edge technologies for farmers, GAVL Managing Director Balram Singh Yadav said.
Temasek's India Head Rohit Sipahimalani said "We are pleased to have another opportunity to partner with the Godrej Group in what is an attractive sector in India".