Advent International Corp. agreed to purchase up to 34.1 million shares of Indian packaged snack food manufacturer DFM Foods Ltd., representing up to a 68% majority stake, for 249.50 Indian rupees per share.
The sellers are WestBridge Crossover Fund LLC, a fund managed by private equity firms KPCB China and WestBridge Capital Partners LLC, alongside its subsidiaries and certain other individual shareholders.
Advent will make an open offer to DFM's public shareholders to buy up to an additional 26% in the company for 249.50 rupees apiece.
Depending on the open offer subscription, the total consideration for the share purchase from the selling shareholders and the open offer will range from 8.52 billion rupees to 9.38 billion rupees.
DFM will continue to trade on the Bombay Stock Exchange under the ticker DFM and the National Stock Exchange of India under the symbol DFMFOODS. The deal is slated to close in three to four months.
ICICI Securities Ltd. is the financial adviser to Advent and is managing the open offer, while KPMG is the exclusive financial adviser to DFM.
As of Sept. 6, US$1 was equivalent to about 71.52 Indian rupees.
