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Jain Irrigation to merge global business with Temasek-owned Rivulis

BSE Disclosure   BusinessLine  

Publicly listed Jain Irrigation System plans to merge its international irrigation equipment business with Temasek-owned Rivulis Pte Singapore and reduce its debt by about INR 2,700 crore, besides bringing back INR 200 crore to India. Post-merger, Jain Irrigation will hold 22% stake in the merged entity which will be headquartered in Singapore and Israel and will continue to be named Rivulis Pte.The business is expected to report revenues of USD 750 million. Goldman Sachs acted as financial advisor, Baker McKenzie acted as legal advisor and PWC acted as tax and diligence advisor to Jain Irrigation for the transaction. The deal, which is expected to be closed early next year, will reduce the consolidated debt of Jain Irrigation by 45% which includes all the restructured overseas bonds of USD 225 million and remove the contingent liability of USD 330 million.