The sale process, which began in November 2019, will help the over 156-year-old SP Group pare the debt pile and sharpen the focus on the flagship construction and engineering business under Afcons.
The valuation of Rs 4,400 crore for a 72.56% stake is at an enterprise level and subject to closing adjustments and also includes an open offer for the remaining stake after the demerger and listing of Eureka Forbes, the SP group said in a statement on Sunday.
The Shapoorji Pallonji Group, which owns over 18% in the Tata Group, is sitting on a debt pile of over Rs 20,000 crore of which around Rs 12,000 crore are under the moratorium till 2023 allowed by the RBI to help borrowers tide over the cash flow issues arising from the pandemic.
“According to a scheme of the arrangement, Eureka Forbes, a 100% subsidiary of Forbes & Company, will be demerged into a standalone company and will be listed on the BSE. Upon demerger and listing, Advent will purchase up to 72.5% of Eureka Forbes’s then outstanding stock on a fully diluted basis from SP Group-owned Forbes & Co, and will also make an open offer for the remaining stake.”