Pricol promoters to sell stake in Pricol Autotech to Warburg Pincus for up to ₹1,663 crore

Résumé détaillé

The proposed transaction involves the sale of 4.69 crore equity shares of Pricol Autotech by members of the promoter and promoter group, including Vijay Mohan, Vikram Mohan and Vanitha Mohan, along with other family members and promoter group entities, to Topaz Terrace Investments B.V., an affiliate of Warburg Pincus LLC.

Private equity major Warburg Pincus will acquire the auto-component manufacturer Pricol Ltd's promoter group's entire 38.51% stake in Pricol Autotech for a consideration of up to ₹1,663.07 crore, following the proposed demerger of Pricol Ltd's Driver Information and Connected Vehicle Solutions (DICVS) business into the new entity, the companies announced on Friday (November 13).

The proposed transaction involves the sale of 4.69 crore equity shares of Pricol Autotech by members of the promoter and promoter group, including Vijay Mohan, Vikram Mohan and Vanitha Mohan, along with other family members and promoter group entities, to Topaz Terrace Investments B.V., an affiliate of Warburg Pincus LLC.

The agreement was approved by Pricol's board on November 13. The acquisition will be completed after the demerger becomes effective, Pricol Autotech's shares are listed on the National Stock Exchange of India (NSE) and BSE, the open offer period expires, and other agreed conditions are fulfilled, including approval from the Competition Commission of India (CCI).

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Following the demerger and listing, Warburg Pincus will make a mandatory open offer to public shareholders of Pricol Autotech to acquire up to an additional 26% of the company's share capital, in accordance with the Securities and Exchange Board of India's (SEBI) takeover regulations.

Upon completion of the proposed acquisition and the open offer, Warburg Pincus will acquire control of Pricol Autotech. The existing sellers will cease to be in control of the company and will seek reclassification from its promoter and promoter group category, subject to applicable laws.

Pricol Ltd will not receive any consideration from the proposed transaction. The entire consideration of up to ₹1,663.07 crore will be paid to the promoter group members and entities selling their stake in Pricol Autotech.

Pricol's board had approved the scheme of…

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