Cupid Breweries And Distilleries 's planned acquisition of SDF Industries Limited through the Corporate Insolvency Resolution Process has been called off, according to a recent disclosure by the company. The cancellation stems from disagreements over additional conditions that were inconsistent with the approved Resolution Plan.

Key Details of the Cancelled Acquisition

Background and Reasons for Cancellation

Cupid Breweries was previously identified as the Successful Resolution Applicant for SDF Industries. However, the company reports that certain conditions incorporated in the Letter of Intent (LOI) issued by the Resolution Professional on behalf of the Committee of Creditors (CoC) were not aligned with their Composite Resolution Plan.

The company stated that these additional conditions could have potentially undermined the objective of reviving SDF Industries. Despite Cupid Breweries' written representations and requests for reconsideration, the issues remained unresolved.

Outcome and Financial Impact

As a result of the unresolved disagreements:

1. The Committee of Creditors revoked the Letter of Intent.
2. The Earnest Money Deposit (EMD) of Rs. 2,00,000 was forfeited.

Cupid Breweries has reported that, aside from the forfeited deposit amount, there is no other material financial impact on the company arising from this development.

Disclosure and Compliance

The company made this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement aims to keep shareholders and investors informed about this significant development in the previously announced acquisition plan.

This turn of events highlights the complexities involved in corporate insolvency resolution processes and the importance of alignment between all parties on the terms and conditions of such acquisitions.

Cupid Breweries And Distilleries has announced a revised open offer by Erramilli Venkatachalam Prasad and Rodrigues Bhagvandas Lily to acquire up to 9,60,000 fully paid-up equity shares, representing 100% of the existing public shareholding. The offer price has been increased to ₹71.40 per share, which includes an interest component of ₹11.40 per share calculated at 10% per annum for 693 days from December 8, 2023, to October 31, 2025.

Revised Offer Details

The total offer consideration now amounts to ₹6,85,44,000. This revision complies with SEBI takeover regulations, with Saffron Capital Advisors Private Limited continuing as the manager to the offer.

Reasons for Revision

The increase in the offer price is due to the addition of an interest component, calculated to compensate for the delay in making the open offer. This adjustment aligns with regulatory requirements and aims to ensure fair treatment of public shareholders.

Key Points of the Revised Offer

Implications for Shareholders

Public shareholders of Cupid Breweries And Distilleries now have the opportunity to tender their shares at a higher price. The revised offer provides an additional incentive for shareholders to participate, given the inclusion of the interest component.

Regulatory Compliance

The acquirers have emphasized that this revision complies with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The move demonstrates a commitment to regulatory adherence and shareholder interests.

Next Steps

Shareholders are advised to review the detailed terms and conditions of the revised offer. The timeline for the offer process remains subject to regulatory approvals and will be communicated in due course.

Cupid Breweries And Distilleries' stock may see increased activity as investors assess the implications of this revised open offer. Market participants will be closely watching for any further developments or responses from the company's management.

Shareholders and potential investors are encouraged to stay informed and consult with their financial advisors regarding any decisions related to this open offer.