Desi Farms Acquires SNA Milk & DFSU Farmer Connect
Desi Farms India Ltd has approved the allotment of equity shares, preference shares, and convertible debentures to acquire a 96.91% stake in SNA Milk and Milk Products Limited and a 99.95% stake in DFSU Farmer Connect Private Limited. This strategic acquisition aims to diversify Desi Farms' business into the stable, consumption-driven dairy and ice cream sector. The company expects operational synergies, better infrastructure utilization, and improved consolidated revenues and financial performance. The transaction is considered a related party transaction but is executed at arm's length based on a registered valuer's report. All requisite approvals, including in-principal approval from BSE for the preferential issue, have been obtained.
Key Highlights
- Desi Farms acquires majority stakes in SNA Milk and DFSU Farmer Connect.
- Acquisition involves share swap for equity, preference shares, and debentures.
- Strategic move to diversify into dairy and ice cream manufacturing.
- Expected synergies and improved financial performance.
- Transaction is a related party deal at arm's length.
Price Impact
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