Malpani Group (MPG), a Maharashtra based diversified business group with leading presence in amusement park business, has acquired majority stake and control in Imagicaaworld Entertainment Ltd. (Imagicaa). The lenders to the Company have completed a debt resolution for Rs. 575 crore, which includes assignment of their debt to Aditya Birla ARC for Rs. 500 crore and lenders were also issued equity shares by way of conversion of debt aggregating to Rs. 75 crore by the Company.
The acquisition was consummated through a debt resolution process outside of NCLT, in accordance with the RBI’s Prudential Framework for Resolution of Stressed Assets, a statement said.
MPG has acquired 66.25% stake in the Company by way of preferential allotment of equity shares worth Rs. 415 crore. As part of the debt resolution plan, the lenders have been allotted equity shares worth Rs. 75 crore resulting in a collective shareholding of 11.97% in the Company. The funds infused in the Company by MPG have been used for repayment of debt to Aditya Birla ARC. Three members of MPG, Rajesh Omkarnath Malpani, Manish Madhav Malpani and Jai Manish Malpani, have been inducted on the Board of the Company.
Commenting on this significant development, the Board of Malpani Group thanked shareholders and lenders of Imagicaaworld Entertainment for their confidence in Malpani Group. The Board further added that “Going forward, it is this trust that shareholders have reposed in Malpani Group, that has increased our responsibility and we ensure to do our best to create long term and sustainable value for all the stakeholders and society. We would like to congratulate everyone on successful completion of this landmark transaction”
Dhimant Bakshi, CEO, Imagicaaworld Entertainment Ltd., “We would like to thank the lenders, Malpani Group, Aditya Birla ARC and Mr. Manmohan Shetty, for successfully completing the Debt Resolution plan of the company. We would also like to give special thanks to the Financial, Legal advisors that have given their astute wisdom to closing this transaction smoothly and our Team for standing by in this journey”
Edelweiss Financial Services acted as exclusive financial advisor to MPG in the transaction, Link Legal acted as the Legal Advisor to MPG, EY conducted the financial and tax due diligence and BDO advised on tax matters. IMAP India acted as the exclusive strategic and financial advisor to the Company while DSK Legal and Crawford Bailey acted as its Legal Advisors. BOB Capital Markets Limited advised the lenders syndicate led by Union Bank of India.
