The money proceeds will likely be utilised for discount of consolidated debt of Jain Irrigation by 45%
The money proceeds will likely be utilised for discount of consolidated debt of Jain Irrigation by 45%
Jain Irrigation Systems Ltd. and Temasek-owned Rivulis Pte Ltd., Singapore stated Jain International Trading B.V., an entirely owned subsidiary of Jain Irrigation and Rivulis have entered into definitive transaction agreements for the merger of International Irrigation Business (IIB) of Jain Irrigation with Rivulis which is able to create an entity with $750 million in revenues.
Temasek had beforehand acquired a majority stake in Rivulis in December 2020 and assumed full possession in March 2022.
The money proceeds will likely be utilised for discount of consolidated debt of Jain Irrigation by 45% which incorporates all of the restructured abroad bonds to the tune of $225 million and full debt of abroad working corporations comprising of IIB, Jain Irrigation stated in a press release.
Jain International Business will proceed to carry stake of twenty-two% in merged entity with Temasek holding the stability 78%.
Through this deal, Jain Irrigation will even get to launch its company assure given by Jain Irrigation, India of ₹2,275 crore to bondholders & IIB lenders.
The merged entity will proceed to make use of and promote outstanding JAIN Brands in markets the place they’ve vital presence and worth.
Jain may have consultant administrators and observer on the board of the corporate and can be capable of assist its progress by way of its vital experience in micro-irrigation, the assertion stated.
Going ahead Jain Irrigation will concentrate on additional enhancing on the India enterprise to drive increased progress and margin in one of many quickest rising irrigation markets on the planet, and ultimately intention to scale back debt on the standalone Indian enterprise stability sheet as nicely – as agreed with the lenders within the latest restructuring, it stated.
Anil Jain, managing director, Jain Irrigation stated, “We are very happy to enter this alliance with Temasek. We anticipate that the merger with Rivulis will create a world leading player ideally placed to serve its global customer base thanks to its geographic footprint, breadth of offerings as well as technological depth and expertise in micro irrigation.”
Richard Klapholz, CEO, Rivulis stated, “While benefitting from significant operational economies of scale and a dedicated, diverse employee base, we will ensure that all commitments to our grower community and to our combined business partners are maintained and further strengthened.”
The firm may have market protection with 25 factories and three,300 staff throughout six continents and 35 international locations. It may have 4 manufacturers particularly Rivulis, Jain, NaanDanJain and Eurodrip.
It will likely be twin headquartered in Singapore and Israel and can proceed to be named Rivulis Pte. Ltd.
For the needs of company branding, the corporate will likely be represented as “Rivulis (In alliance with Jain International)”
Richard Klapholz, the present Rivulis CEO, will proceed to steer the corporate. Top senior associates from the IIB are anticipated to proceed in management roles throughout the corporate. The transaction is anticipated to be accomplished by early 2023.
Source: www.thehindu.com
