Avantha Group promoter Gautam Thapar’s private investment entity has acquired 9.09 per cent stake in overseas paper arm Ballarpur International Graphic Paper Holdings (BIGPH) based on pre-money valuation of $1 billion by converting its debentures into equity.
B Hariharan, group finance chief told VCCircle that the convertible instruments worth around $100 million were issued around two years ago. “There is no fresh inflow of cash into the company as promoters have just converted the debentures into equity,” he said.
He added the conversion of the debentures into equity was due before the proposed listing of the holding company of BIGPH in London.
Till now, the group’s flagship paper company Ballarpur Industries or Bilt through its wholly owned subsidiary, Ballarpur International Holdings B.V. (BIH) held 79.53 per cent stake in the Dutch arm BIGPH. The balance 20.47 per cent stake was held by two financial investors
viz. JPMorgan Mauritius Holdings VII Limited and Lathe Investments PTE Limited (a wholly owned subsidiary of GIC of Singapore).
As per the latest transaction, Avantha International Asset B.V. has acquired an equity stake of 9.09 per cent in BIGPH based on pre-money valuation of $1 billion. Consequently, the equity stake of BIH (and thereby Bilt) and the two financial investors stands revised to 72.30 per cent and 18.61 per cent, respectively.
This comes even as the group’s plans to list Bilt Paper Plc, another international arm which is a holding company of BIGPH, on the London Stock Exchange has got delayed.
See our earlier report.
AVANTHA GROUP FIRM STRIKES A SMALL DOMESTIC DEAL
Meanwhile, Biltech Building Elements Limited, a privately held firm of the Avantha Group, has struck deal to acquire ownership of all fixed assets comprising of land, building, plant & machinery and related stores and spares of AAC Blocks Division of small cap public listed
textiles firm Mohit Industries Ltd, situated at Palghar, Maharashtra for an undisclosed sum.
Biltech Building Elements Limited is into the process of utilising fly ash generated from thermal power plants to manufacture lightweight autoclaved aerated concrete (AAC), a certified green building material which is resistant to termite, water, fire, sound and earthquake.
The company’s plants are located in Palwal, Haryana, and Bhigwan, Maharashtra. With a capacity of over 3 lakh cu.m. per annum, Biltech Building Elements is the largest producer of AAC in India, controlling over 40 per cent of market, according to its website.
It has been meeting the needs of the construction industry, both in the public and private sectors, in northern and western India for over a decade.
