Eid Parry Acquires GMR Industries

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CHENNAI, INDIA (GaeaTimes.com)- EID Parry, the famous South India based sugar manufacturer reportedly made an offer to acquire 65 percent stake in the company GMR Industries on Monday. After the offer, GMR industries will become a minority stock holder in the entity. EID parry is a part of Murugappa Group based in Chennai and it is a major player in the sugar sector. Besides it also deals in nutraceuticals and bio-pesticides. GMR Industries has 3 full functional sugar complexes in Karnataka and Andhra Pradesh. This acquisition will prove to be good for the EID Parry group as it will make an entry in Andhra Pradesh and north Karnataka. The latter region is known for sugar cane production. A Vellayan, the Chairman of EID Parry said that this deal will strengthen the company and make it one of the leading sugar companies of the country.

After the acquisition offer made by EID Parry the share price of GMR Industries Ltd shot up by more than 7 percent. The group is looking forward to the acquisition by EID Parry. The MD of GMR group, R Ramakrishnan said that EID Parry will possibly use the existing infrastructure and core assets of the GMR plants to consolidate its operations in near future.

As per the latest reports, GMR group is selling the shares to EID Parry at INR 57 per share. The buyer will offer these shares to the public for INR 110 each. The EID Parry officials did not make any comment on the worth of the entire deal. For this transaction GMR group chose the Rothschild group as financial advisor.