Vikas Lifecare set to acquire Kohinoor Foods for Rs 250 crore, stocks trade mixed
Vikas Lifecare is set to acquire Kohinoor Food and both the counters traded mixed in trade. The company board of Kohinoor Foods reviewed and approved the proposal of Vikas Lifecare for strategic investment, whereas its earnings for the quarter ended on December 31 disappointed the street.
The board has reviewed the proposal of Vikas Lifecare for strategic investment in the company to the tune of Rs 250 crore and accorded its approval to enter into a memorandum of understanding (MoU) with Vikas Lifecare, the company said in its exchange filing.
The objective of MoU is to settle the company’s bank debts and future business growth, subject to receipt of bankers’ NOC, and other applicable regulatory/statutory approvals, in accordance with applicable laws, including the SEBI Regulations, the filing said.
A definitive agreement to formalize the transaction shall be entered into after completion of the due diligence process and as per the structure suggested by the intermediaries appointed for the transaction, with the consent of the board of directors of both entities, subject to all regulatory approvals, it added.