Bengal & Assam Acquires Shares in Cavendish for Rs. 130 Crores
Filing Summary
Bengal & Assam Company Ltd has disclosed an acquisition under Regulation 30 of the SEBI Listing Obligations. The company, along with its subsidiary J.K. Fenner (India) Limited, has acquired 40,00,000 equity shares of Cavendish Industries Limited from JK Tornel, a subsidiary of JK Tyre & Industries Limited. The total consideration for the acquisition amounts to Rs. 130.64 crores. The transaction involves Bengal & Assam acquiring 6,00,000 shares and J.K. Fenner acquiring 34,00,000 shares. The acquisition is set to be completed by November 30, 2025.
Bengal & Assam Company Ltd has announced the acquisition of equity shares in Cavendish Industries Limited. This transaction is disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The acquisition involves the purchase of 40,00,000 equity shares from JK Tornel, a subsidiary of JK Tyre & Industries Limited. Bengal & Assam Company Ltd and its subsidiary, J.K. Fenner (India) Limited, are the acquiring entities.
The total consideration for the acquisition is Rs. 130.64 crores. Bengal & Assam Company Ltd will acquire 6,00,000 equity shares at a price of Rs. 326.60 per share, amounting to Rs. 19.60 crores. J.K. Fenner (India) Limited will acquire 34,00,000 equity shares at the same price per share, totaling Rs. 111.04 crores. The transaction is structured as a cash consideration.
Cavendish Industries Limited is a subsidiary of JK Tyre & Industries Limited and operates in the tyres and rubber products industry. The acquisition is of strategic nature for Bengal & Assam Company Ltd, which is a promoter of JK Tyre. The transaction does not require any governmental or regulatory approvals. The acquisition is classified as a related party transaction due to the involvement of JK Tornel, a subsidiary of JK Tyre & Industries Ltd, which is an associate company and part of the promoter group of Bengal & Assam Company Ltd.
The acquisition is scheduled to be completed by November 30, 2025. Post-acquisition, Cavendish Industries Limited will continue to be a subsidiary of JK Tyre & Industries Limited. The acquired shares represent a 1% shareholding for Bengal & Assam Company Ltd and a 5.67% shareholding for J.K. Fenner (India) Limited. Cavendish Industries Limited was incorporated on January 12, 2015, and has reported turnovers of Rs. 3981 crores, Rs. 3657 crores, and Rs. 3864 crores over the last three financial years.
JK Tyre & Industries Limited is a prominent player in the tyre manufacturing industry, focusing on producing a wide range of tyres for various vehicles. The company is known for its strategic investments and expansions in the tyre sector.
Bengal & Assam Company Ltd is an investment company with interests in various sectors, including tyres and rubber products. The company is part of the JK Group and focuses on strategic investments to enhance its portfolio and shareholder value.