Debt Debt Financing
Barclays funds Rakesh Jhunjhunwalas' Zydus animal healthcare buy: report
British banking group Barclays has bought out the entire Rs 500-crore zero-coupon bond offering by Rare Equity Private Ltd (REPL), a Rakesh Jhunjhunwala controlled company, to finance the latter's recent stake acquisition in Zydus Cadila's animal healthcare business. The fund-raising is backed by pledge of shares and personal guarantee of Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala. REPL issued non-convertible debentures (NCD) in two tranches, with maturities of three years and one day, and four years and one day, generating a yield of around 7.75% for Barclays.
From the Venture Intelligence M&A Deals Database: IN May 2021, Private Equity firm Multiples PE-led consortium announced acquisition of a 100% stake in Animal Healthcare Established Markets Undertaking (Zydus AH), the animal health business unit of Ahmedabad-based, publicly listed Cadila Healthcare Ltd, for INR 2,921 crore on a cash free and debt free basis. The consortium, which includes Canada Pension Plan Investment Board (CPPIB) and well known public markets investor Rakesh Jhunjhunwala-promoted RARE Enterprises, is to purchase Zydus AH through Zenex Animal Health India, an SPV controlled by it.