Neha International Ltd, a Hyderabad-based floriculture company that exports cut-flowers, plans to acquire three floriculture companies based in Ethiopia.
Neha will acquire a 100% stake in the Mauritius-based Globeagro Holdings, which holds a 99% stake in Alliance Flowers Plc., and 50% stake each in Holetta Roses Plc. and Oromia Wonders Plc.
Neha proposes to offer 75.22 lakh shares of Rs10 each at a price of Rs42 per share, amounting to Rs31.59 crore, to the promoters of Globeagro Holdings. The balance, of some Rs9 crore, would be paid in cash in phases, he said. The transaction is expected to be complete by December.
Neha also plans a preferential offer to its promoters and associates to raise the Rs27.5 crore of funds required to meet the new capital expenditure and working capital needs of the company. “We hope to get consent for these moves at our AGM (annual general meeting) on 10 October. With the cross-border acquisitions, we expect profitability and turnover to go up significantly,” Reddy said.
Read more in The Livemint article.
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