The attempt to delist DFM Foods has received a new twist with private equity firm Advent International making a fresh offer of ₹467 a share to acquire 26.3 per cent stake in the company.

In August, Advent International, which holds a majority stake in DFM Foods through its subsidiary AI Global Investments, announced a reverse book-building offer to de-list the packed food maker from the stock exchanges and set the floor price at ₹263.80 per share.

The tendering window opened on December 13 and ended last Tuesday. It received 90,05,747 equity shares through 1,395 successful bids in the price range of ₹263.80-5,000 a share. Following this, the discovered price was set at ₹525 a share.

However, on Wednesday, promoters rejected the discovered price and announced that shares tendered in the reverse book-building will be released in the respective demat accounts of the public shareholders.

Advent International Corp holds a 73.70 per cent stake in DFM Foods through its subsidiary AI Global Investments (Cyprus) PCC.

Counter offer

On Thursday, in counter to the discovered price, AI Global Investments (Cyprus) PCC and AI Darwin (Cayman), as person acting in concert with the acquirer, has made an offer of ₹467 a share.

All the shares tendered earlier and not withdrawn by investors along with additionally tendered shares during the counter offer period will be considered at the counter offer price, said JM Financial in a statement on Thursday.

In its letter of offer, the company said the proposed delisting would enable the acquirer along with promoter group of the company to obtain full ownership of the company which, in turn, provides increased operational flexibility to support the business and make fresh investments.

Cost reduction

The delisting will also result in reduction of the ongoing substantial compliance costs which includes the costs associated with listing of equity shares such as annual listing fees and fees payable to share transfer agents or such other expenses required to be incurred as per the applicable securities law, it said.

In the quarter ended September, the company reported a net loss of ₹12 crore against loss of ₹3 crore logged in the same period last year. Its total income increased to ₹166 crore (₹149 crore).

Lagan Shastri, Managing Director, DFM Foods, said after battling the inflationary storms over the past few quarters, the prices of palm oil and cartons decreased 15 per cent and 9 per cent in September quarter over the previous quarter. However, key inputs such as palm oil, laminates and corn meal still remain higher than a year ago while PNG prices continued to rise in Q2.