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Wadias to raise $200Million for Danone buyout
By siliconindia
Bombay: Bombay Burmah, India's second oldest publicly quoted company owned by business conglomerate Wadia Groupn is all set to raise $200 million from international markets to finance its acquisitions of Group Denone's 25.5 percent stake in the largest biscuit company of the country, Britannia Industries.
According to Economic Times' sources, the company has already begun talks with foreign banks for the transaction and one of the Wadia Group's companies is learnt to be standing guarantee for the loan. Bombay Burmah is likely to pay at least Libor plus 500 basis points for the loan. The six-month Libor is at 3.14 percent Libor, or London Interbank Offerred Rate, is the rate at which banks lend to each other. The fund rising plans is expected to be completed in a month.
Danone's stake in Britannia is valued at 
839 crore. Both the Wadias and Danone own equal stakes in the London-based ABI Holdings which, in turn, holds 51percent in Britannia Industries.
Nusli Wadia, Chairman, Bombay Burmah, had earlier said that negotiations with Danone were at a fairly advanced stage and the company enjoyed some pre-emption rights which it intended to exercise at the right time.
839 crore. Both the Wadias and Danone own equal stakes in the London-based ABI Holdings which, in turn, holds 51percent in Britannia Industries.
Nusli Wadia, Chairman, Bombay Burmah, had earlier said that negotiations with Danone were at a fairly advanced stage and the company enjoyed some pre-emption rights which it intended to exercise at the right time.
