A move to acquire under-pressure Indian dairy business Kwality by one of the country’s major snack companies has been rejected.
Haldiram’s Snacks had bid INR1.42bn (US$19.7m) for Kwality, which last year found itself the subject of insolvency proceedings after a petition from KKR, the private-equity firm that had invested in the business in 2016. At the time, unnamed banking sources had told The Hindu Business Line publication Kwality had debt of around INR20bn.
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However, lenders to Kwality have turned down Haldiram’s offer. Haldiram’s has reportedly tabled a revised bid of INR1.45bn, upping the element to be paid to Kwality’s creditors.
According to Press Trust of India, Haldiram’s said its higher offer “will help financial creditors derive a much better value than they can hope to realise in the event [the] corporate debtor is put into liquidation”.
In the year to the end of March, Kwality generated revenue from operations of INR20.89bn, down from INR67.25 in the previous 12 months.
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Kwality made a loss after tax of INR29.48bn, against a profit of INR711.1m the year before.
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