Blackstone, Moore Capital, Wellington Management Picks 15% in REI Agro
Blackstone, Moore Capital and Wellington Management has invested around Rs 300 Cr in 
REI Agro for 15% stake through the rights issue which was sold to them by the existing investors.
In all, REI Agro raised Rs.1245 Cr through rights issue which includes the above investment, at Rs.19.5 per share for repayment of loan and working capital needs.
According to current price of Rs.31 per share, the company is valued at Rs.3000 Cr, but the above investment of Rs.300 Cr for 15% stake values REI Agro at Rs.2000 Cr.
Transaction Reference: ET
REI Agro is in the business of basmati rice milling and operates two processing units in Bawal (Haryana) and a leased unit in Punjab with an aggregate capacity of 9.02 lakh mtpa.
Its activity invloves procuring paddy to drying, de-husking, milling and polishing, colour sorting, grading, inspection, packing, branding, distribution and retailing.
It has also diversified into wind power generation with wind farms at an aggregate capacity of 46.1 MW.
REI Agro demerged its retail division which was started in 2006-07 into a separate entity called ‘REI Six Ten Retail Ltd.’ to focus on its core business. REI Six Ten Retail Ltd. focuses mainly on food and grocery retail.
The company’s net sales for 2009-2010 increased by 50.85% to Rs.3693.23 Cr as against Rs.2448.23 Cr for 2008-09. Its net profit increased by 158% to Rs.157.17 Cr in FY10 from Rs.60.93 Cr in FY09.
Both. London-absed Moore Capital and Boston-based Wellington Management are hedge funds.
Wellington Managements Indian investments include companies like Manappuram General Finance and Leasing Ltd, Shriram Transport Finance, etc.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 22/07/10 | REI Agro - Blackstone, Moore, Wellington | Private Equity | Blackstone Advisors India Private Limited | 63.63 |
| 24/07/09 | REI Agro-QIP | IPO / Offerings | 37.76 | |
| 02/11/05 | REI Agro Limited - GDR Issue | IPO / Offerings | 30.16 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 08/02/12 | Private Equity | Parag Milk Foods Private Limited | 50.00 | Completed | |
| 20/01/12 | IPO / Offerings | Hindusthaan Eco Ventures Limited | - | Planned | |
| 16/01/12 | M&A | Malabar Trading Company Limited | Protect Nature Private Limited | - | Completed |
| 09/01/12 | IPO / Offerings | Octant Industries Limited | 2.48 | Announced |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Blackstone Advisors India Private Limited | IT/ITES/Technology Media BFSI Healthcare Travel & Leisure |
http://www.blackstone.com | Amit DixitAkhil GuptaMathew Cyriac | |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| REI Agro Limited | Sanjay Jhunjhunwala & Family | Everest House, 46C, Chowringhee Road, Kolkata-700071. West Bengal, India. | Usher Agro Limited | www.reiagro.com |
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