Indian sugar producer E.I.D Parry has agreed to acquire a majority stake in GMR Industries, the companies said in a joint statement on Sunday. GMR owns and operates three integrated sugar complexes in southern India. The deal is likely to cost about Rs 110-120 crore. 

Rothschild was the sole financial advisor to GMR Group on the transaction.

Under the agreement, EID Parry will acquire 51% shares from the GMR Holdings in GMR Industries at Rs. 57 per share. The company will make an open offer for another 20% according to the SEBI rules after which EID Parry will hold a minimum of 65 percent stake in GMR Industries.

The deal is in line with holding firm GMR Group's overall strategy to divest non-core assets and focus on infrastructure and energy businesses in the future, the statement said.

According to The Hindu Business Line, GMR Industires operates three fully-integrated sugar complexes in Andhra Pradesh and Karnataka with a combined installed crushing capacity of 11,000 TCD (tonne crushing capacity per day), 46 MW of co-generation and 95 KLPD (kilo litre per day) of distillery.

GMR also holds a license to set up and operate an integrated sugar complex of 3,500 TCD sugar mill at Raibagh in Karnataka. The company also owns land and license to set up another plant in Andhra Pradesh.

The agreement was signed in Chennai on Sunday by A. Vellayan, Chairman, EID Parry India Ltd., and K. Balasubramanian, Director, GMR Holdings.

EID Parry was incorporated in 1975, and the company has five sugar factories with a total capacity to crush 19000 TCD, and it also generates 85 MW of power and two distilleries with a capacity of 135 KLPD, according to a report in The Hindu Business Line. 

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