Sir Shadi Lal Enterprises Ltd, a New Delhi-based sugar manufacturer, has entered into a definitive agreement to sell its sugar unit located at Unn in Shamli district of Uttar Pradesh, for an undisclosed amount to Superior Foods Grains Pvt Ltd, the company said in stock market disclosure.
The deal is subject to shareholders' approval by postal ballot and the approval of the Uttar Pradesh government.
The transaction will be through a slump sale of all assets and liabilities of Unn Sugar Mill and is expected to be completed by March 31, 2014.
Earlier, the company’s board of directors at its meeting held on January 4, 2014, had approved the proposal to sell, transfer or otherwise dispose of one of the sugar units of the company.
Sir Shadi Lal Enterprises was established in 1933 under the name 'The Upper Doab Sugar Mills Ltd by Sir Shadi Lal. Currently, the firm has four manufacturing units comprising two sugar units—Upper Doab Sugar Mills and Unn Sugar Complex, Muzaffarnagar (UP)—and two distillery units—Shamli Distillery & Chemical Works and Pilkhani Distillery & Chemical Works, Pilkhani, Saharanpur (UP).
In September 2007, Sir Shadi Lal Enterprises expanded its cane crushing capacity by acquiring assets of Unn Sugar Complex at Unn from Monnet Sugar Ltd with a cane crushing capacity of 5000 TCD per day.
Motilal Oswal Investment Advisors acted as the exclusive financial advisors to Sir Shadi Lal Enterprises for this transaction.
Chandigarh-based Superior Foods Grains was started around seven years ago.
(Edited by Joby Puthuparampil Johnson)