July 11, 2018
Managing Director Acharya Balkrishna has clarified that Patanjali Ayurved will not back out from the race to purchase bankruptcy-bound Ruchi Soya and explore all options, including legal, to clinch the deal. The competition is against Adani Wilmar, which sells cooking oil under the Fortune brand.
Patanjali had bid for around Rs. 5,700 crore to acquire Ruchi Soya, but Adani emerged as the highest bidder (H1) with an offer of about Rs. 6,000 crore.
Not staying behind, Patanjali Ayurved sought clarification from the RP (resolution professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process. It also sought to know the parameters adopted by the RP to declare Adani Wilmar as the highest bidder.
Balkrishna said that they have questioned the appointment of Cyril Amarchand Mangaldas as the RP’s legal advisor as the said law firm was already advising Adani Group and is waiting for the reply.
Patanjali was asked to submit a revised bid by June 16 to match or better the highest offer of Rs. 6,000 crore by Adani Wilmar under the Swiss Challenge system adopted by the RP and the committee of creditors. But instead it wrote to the RP seeking clarifications instead of submitting a fresh bid.
Under the Swiss Challenge method, Adani will get another chance to make an offer if Patanjali’s revised bid exceeds the offer made by the former.
Patanjali Ayurved already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging and it wants to further expand its cooking oil business.