Prataap Snacks Limited — Important, 08-01-2025: Updates

The Acquirer, Authum Investment & Infrastructure Limited, along with Ms. Mahi Madhusudan Kela as the Person Acting in Concert (PAC), is set to launch an Open Offer for up to 62,98,351 Equity Shares of Prataap Snacks Limited (approximately 26.01% of the voting share capital) at an offer price of INR 864 per share, including applicable interest of INR 1.66 per share. This offer aims to comply with SEBI's regulations following the execution of a Share Purchase Agreement (SPA) with current shareholders.

The SPA entails the acquisition of 1,02,48,582 shares by the Acquirer and 11,00,000 shares by the PAC, giving them control of the Target Company. The total consideration for the Open Offer is estimated at INR 545.22 crore. The offer enables shareholders to tender their shares within the specified period, which commences on January 16, 2025, and concludes on January 29, 2025.

Shareholders are advised to ensure their shares are free from encumbrances, and to submit necessary documentation, including a share transfer deed, for physical shares. The Acquirer plans to maintain the Target Company's existing business operations without intentions to delist, focusing on value creation for stakeholders.

Investors should approach this Open Offer as an opportunity to assess the implications of ownership changes in a growing snacks sector company and consider potential for future dividends or capital restructuring based on the new management’s strategic direction.