Golden Agri: Proterra Investment fund to invest in indirect subsidiary Gemini Edibles

Golden Agri-Resources said on Tuesday that its indirect subsidiary, Golden Agri International India Holding (GAIIH), entered a conditional deal for Black River Food 2 to subscribe for new shares in GAIIH’s 75 percent-owned subsidiary, Gemini Edibles & Fats India (GEFI).

Black River Food 2, an investment fund managed by Proterra Investment Partners, will participate in 25 percent of the enlarged issued and fully paid-up share capital of GEFI, in a deal which will involve restructuring GEFI’s existing shareholdings, Golden Agri-Resources said in a filing to SGX after the market close on Tuesday.

Black River Food 2 will subscribe for the new shares in GEFI and also purchase existing shares held by all existing shareholders, for a total amount of 6.4 billion Indian rupees, or around US$89.6 million, it said. GEFI’s net asset value is around 3.5 billion rupees, or around US$49.5 million, the filing said.

In addition, Black River Food 2 will have a put option to GEFI as a possible exit route later, the filing said.

After the deal, GAIIH’s stake in GEFI will fall to 56 percent, Golden Agri said.

GEFI, which is an India-based company involved in making and marketing edible oils and fats under its flagship “Freedom” brand, will use the proceeds of the deal to increase its manufacturing capacity, expand its distribution network and for general working capital purposes, Golden Agri said.

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