Advent International on December 21 rejected the discovered price for the delisting of shares of Indian snack food company DFM Foods Ltd. The discovered price, calculated through the reverse book building process, came at Rs 525 a share.
Advent Intl has now made a counteroffer to buy each share at Rs 467 to acquire a 26.3 percent stake in the company for which the tender window may open from December 30 to January 5.
Price discovery is the process of determining the price of an asset or a commodity in the marketplace
Initially, Advent had announced a floor price of Rs 263.80 for the deal for which the issue period was between December 13 and December 19. Now that the acquirer has rejected the discovered price, shares will be released in the respective demat accounts of the public shareholders.
Also read: Bankers push to end unusual delisting rules amid deal boom
The private equity company holds a 73.70 percent stake in DFM Foods through its subsidiary AI Global Investments (Cyprus) PCC Limited.
In April, sources told Moneycontrol that Advent was deliberating on delisting DFM Foods so that it could take "bold, strategic decisions" for an overhaul to improve the company's performance. PE firms may be able to take aggressive decisions better in a private company than a listed entity, the source said.
Also read: Exclusive | Advent-owned DFM Foods may look to delist from exchanges: Sources
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