Malpani Group acquires majority stake in Imagicaaworld Entertainment

Maharashtra-based Malpani Group, which has a leading presence in the amusement park business, on June 24 said it has acquired a majority stake and control of rival Imagicaaworld Entertainment Ltd through a debt resolution process.

"The acquisition was consummated through a debt resolution process outside NCLT, in accordance with the RBI’s Prudential Framework for Resolution of Stressed Assets," said a statement from Malpani Group (MPG). ”

Imagicaa’s lenders have completed a debt resolution for Rs 575 crore, which includes the assignment of their debt to Aditya Birla ARC for Rs 500 crore and lenders were also issued equity shares by way of conversion of debt aggregating to Rs 75 crore by the company. MPG has acquired 66.25 per cent stake in Imagicaa by way of preferential allotment of equity shares worth Rs 415 crore.

"As part of the debt resolution plan, the lenders have been allotted equity shares worth Rs 75 crore resulting in a collective shareholding of 11.97 per cent in the company. The funds infused in the company by MPG have been used for repayment of debt to Aditya Birla ARC," it said. Following this, three members of MPG have been inducted on the board of Imagicaa.