Market analysts have predicted that the Wadia Group could buy the 25.48% stake held by Danone in the companies’ joint venture, Britannia Industries, for around US$200m.
“Danone’s stake in Britannia could be valued at INR8.69bn (US$173m), calculated on the price that Britannia shares closed last Friday (3rd April), as it was the last trading price before the deal was informed to the stock exchange,” an analyst at the Bombay stock exchange told just-food today (8 April).
“The Wadia’s have been trying to raise $400m for financing of other group businesses recently and now ICICI Bank has stepped in to finance $200m for closing this deal,” the analyst added.
It is understood that Leila Lands, a subsidiary of the Wadia company Bombay Burmah, will look to buy out Danone.
According to India’s takeover code, the transacting price for a deal between founders should be the high six-month average or the two-week average share price and the buyer could pay a 25% premium, if the seller agrees.