Jain Irrigation Systems on Thursday said it has completed the deal to merge global irrigation business with Temasek-owned Rivulis.
In June last year, Jain Irrigation Systems Ltd had announced that its global irrigation business will be merged with Temasek-owned Rivulis in a cash-and-stock deal and the combined entity will have a revenue of USD 750 million.
Jain Irrigation System informed in a regulatory filing that Jain International Trading B V (JITBV), its wholly-owned subsidiary, and Rivulis have completed the transaction.
"Merged entity will create a global irrigation and climate leader -- being 2nd largest in the world with ~ USD 750 million in revenues. The corporate brand of the combined company will be 'Rivulis' In alliance with Jain International'," the company said.
All the regulatory approvals related to the merger of multiple overseas subsidiaries of JITBV have been received by both entities.
The condition precedent required by the share purchase agreement entered into by Rivulis Pte. Ltd and Jain International Trading B V have been satisfied.
Jain (Israel) B V (step-down subsidiary of JITBV) will hold a strategic minority stake of 18.7 per cent in Rivulis Pte. Ltd post merger.
With this cash and stock transaction, there has been a reduction in consolidated net debt of Jain Irrigation by 44 per cent, which is Rs 2,800 crore. At the end of December 31, 2022, debt was Rs 6,415 crore, which will come down to Rs 3,615 crore.
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