M&A

M&A

Banganga Paper to acquire CMJ Breweries for Rs.22-Cr

BSE Announcement   Business Line  

Nashik-based, publicly listed Banganga Paper Industries is to acquire a 78.99% equity stake in Shillong, Meghalaya-headquartered CMJ Breweries for INR 22 crore. The acquisition will be financed through a share swap, with Banganga Paper Industries issuing 15.11 crore equity shares to the promoters of CMJ Breweries. Batliboi & Purohit, Chartered Accountants, have been appointed as joint statutory auditors for the transaction.Founded in 2007, CMJ Breweries is the largest brewery in the Northeast region, producing premium beer. The company collaborates with United Breweries, Carlsberg India, Mohan Meakin, Yuksom Breweries, and Sona Beverages.Post-acquisition, Banganga Paper Industries will be renamed Asgard Alcobev. Ronak Jain and his associates will acquire 42.81% of the equity shares and 6% convertible warrants on a preferential basis, with an additional 17% allocated to financial investors. Ronak Jain plans to launch an open offer to acquire the remaining floating shares of the company, with the aim to delist it after the completion of the open offer.

For FY24, CMJ Breweries had reported about INR 329 Cr in Operating Income and about INR 26 Cr in Net Loss.