Patanjali still in race to buy Ruchi Soya as Adani Willmar backs out

Dec 24, 2018

Patanjali Ayurved is very adamant to get Ruchi Soya as Adani Willmar, the winner bidder, is backing out of the deal citing delays in closing procedure.

Being the second-highest bidder, Patanjali Ayurved has written to resolution professional Shailendra Ajmera and the lenders to Ruchi Soya that if permitted, it is still interested and is willing to match Adani’s offer , said the spokesperson.

This decision comes after Adani Wilmar, in a letter to the resolution professional and the lenders, said it is pulling out from the acquisition and withdrawing its Rs. 5,474-crore offer as the delays in closing the deal is causing “deterioration of the asset” and is “detrimental to the interest of the stakeholders”, the person said.

Adani Wilmar, a joint venture between infrastructure major Adani Group and Singapore’s Wilmar International, had been selected by the committee of creditors (CoC) as the top bidder to win for India’s largest bankrupt edible oil maker Ruchi Soya in August 2018.

Debt-ridden Ruchi Soya owes Rs. 9,405 crore to lenders and Rs. 1,248 crore to operational creditors declaring total bankruptcy.

Out of Adani Wilmar’s offer of Rs. 5,474 crore, Rs. 4,300 crore was to be paid to lenders. Baba Ramdev’s Patanjali Ayurved had made a higher offer of Rs. 5,765 crore, but set aside a smaller amount for the lenders at Rs. 4,065 crore. The resolution plan is still to be approved by the National Company Law Tribunal.

Owning popular brands such as Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star, Ruchi Soya has 3.72 million tonnes oil seed extraction capacity in India. It has around 24 plants of crushing, milling, refining and packaging edible oils, and is one of the largest exporters of value-added soy products.

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