Future Consumer signs definitive agreements to sell its stake in ACK

Future Consumer signs definitive agreements to sell its stake in ACK

Agency News

Mumbai, Oct 1: Future Consumer has executed definitive agreements on September 29, 2018 to sell its stake in Amar Chitra Katha (ACK) to India Special Situations Scheme I (a scheme of India Special Situations Trust an alternative investment fund). A definitive purchase agreement is a legal document which records the conditions for a purchase/sale of a business. It includes the terms and conditions for acquisition or purchase of a firm such as the purchase consideration, payment mode, structure of sale, and even the termination clause in case of a default, among others.

The rumour is that the that the investments of the Future Consumer Ltd held in ACK were proposed to be sold to Griffin Partners Limited.

Upon completion of the aforesaid transaction in accordance to the terms and conditions under the said agreements, the Company shall receive an aggregate consideration of Rs. 44.39 crore and consequently ACK shall cease to be subsidiary of the company, Future Consumer said in a filing with BSE.

Further, the Company has agreed to subscribe to 4977 compulsorily convertible debentures of ACK amounting to Rs 49.77 crore in lieu and being equivalent to the value of outstanding loans granted by the company to ACK. The CCDs shall be convertible at the expiry of three years.

The Company shall have right to appoint one Director on the Board of ACK and Investor shall have the right to nominate the remaining directors on the board of Amar Chitra Katha Private Limited.

Shares of Future Consumer Ltd was last trading in BSE at Rs.40 as compared to the previous close of Rs. 41.5. The total number of shares traded during the day was 732097 in over 2835 trades. The stock hit an intraday high of Rs. 41.65 and intraday low of 37.15. The net turnover during the day was Rs. 28801369. (PenNews with input from UNI)