Devyani International shares rally 4% after revision in Sapphire Foods merger plan
Devyani International witnessed an uptick on Thursday after the company said its merger with Sapphire Foods India remains on track, while a proposed secondary share sale involving Sapphire Foods Mauritius and Arctic International has been called off. The share-swap ratio remains unchanged, but the revised deal alters the expected post-merger promoter holding.
Devyani International's shares surged by 4.02% to Rs 155.36 on Thursday as the company announced revisions to its proposed merger with Sapphire Foods India. The company confirmed that the Scheme of Arrangement between the two firms remains on track, despite the cancellation of a secondary sale of shares by Sapphire Foods Mauritius and Arctic International.
This decision comes after commercial discussions between the parties. As a result, Sapphire Foods Mauritius will now receive Devyani International shares in the merger scheme, on par with other Sapphire Foods shareholders. The share-swap ratio and other key terms of the merger will stay unchanged. Following the scheme, Devyani International's promoter holding will decrease from 61.37% to 41.99%, while public shareholders' stake will increase from 38.63% to 58.01%.
The total outstanding equity shares of Devyani International are expected to rise from 123.29 crore to 180.17 crore after the merger. The news follows strong buying interest in Devyani International's shares, which have gained nearly 29% in the past month.
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- Devyani International, Sapphire Foods revise proposed merger scheme business-standard.com
