KKR completes Rs 2,474-crore investment in UPL agritech arm
Dec 18, 2022
Mumbai (Maharashtra) [India], December 18 : UPL has announced the completion of an investment of Rs 2,474 crore by global investment firm KKR for 13.33 per cent stake in Advanta Enterprises, agritech arm of UPL, formerly known as United Phosphorus Ltd.
This is a part of the larger corporate realignment exercise announced in October 2022 to create four distinct business platforms -- Global Crop Protection, India Agtech, Global Seeds and Manufacturing and Specialty Chemicals -- to unleash growth potential of each of these platforms and unlock the value for UPL shareholders by facilitating 'fair value recognition' of each platform, according to a UPL statement shared with stock exchanges on Saturday.
On October 21, UPL announced that ADIA, Brookfield, KKR and TPG will separately invest Rs 4,040 crore for minority stakes in UPL's pure-play business platforms.
UPL in October had announced a strategic corporate realignment by creating distinct pure-play business platforms - to unleash growth potential for each of these platforms through enhanced focus and efficient deployment of resources. The company in a statement said the realignment would unlock value for UPL shareholders by facilitating 'fair value recognition' of the 'distinct pure-play platforms'.
The statement in October said a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Brookfield and TPG to invest Rs 1,580 crore for 9.09 per cent stake in UPL SAS -- India Agtech Platform at an equity valuation of Rs 17,380 crore. KKR to invest USD 300 million (Rs 2,460 crore) for 13.33 per cent stake in Advanta Enterprises -- global seeds platform at an equity valuation of USD 2.25 billion.
A wholly-owned subsidiary of the Abu Dhabi Investment Authority and TPG to hold 22.2 per cent stake in UPL Cayman, which will be the global crop protection platform.
