Agrochemical major UPL on Friday announced a strategic corporate realignment in which ADIA, Brookfield, KKR and TPG will separately invest ₹4,040 crore ($500 million) for minority stakes in its pure-play business platforms.
Abu Dhabi Investment Authority (ADIA), Brookfield and TPG will invest ₹1,580 crore ($200 million) for a 9.09% stake in Agri-tech Platform UPL SAS at an equity valuation of ₹17,380 crore ($2.2 billion), UPL said in a statement.
KKR will invest $300 million (₹2,460 crore) for a 13.33% stake ‘Advanta Enterprises – Global Seeds Platform’ at an equity valuation of $2.25 billion (₹18,450 crore).
ADIA and TPG will hold a 22.2% stake in UPL Cayman, which will be the Global Crop Protection Platform (ex-India), according to the statement. The financial details of the deal were not disclosed.
These investments are independent transactions for which separate agreements have been agreed pursuant to negotiations between each of the investors and UPL, it added.
The corporate realignment exercise is expected to complete in the next 45-90 days, subject to customary closing conditions and required approvals, the company said.
“Our commitment to transform the global food value chain will now receive even more impetus with the creation of these distinct pure-play platforms. This shall enable it to bring in enhanced focus, ensure better allocation and utilisation of resources and outcome-oriented solutions to farmers,” said UPL Global CEO Jai Shroff.
In addition, it has enabled ‘fair value recognition’ of each ‘Individual Platform’ with investments from distinct marquee global investors, resulting in significant unlocking of value for UPL’s existing shareholders, he said.
“More importantly, this provides us an opportunity to unleash the growth potential of each of our distinct platforms to deliver accelerated and sustainable growth,” he added.