Crisis-hit Shree Renuka Sugars’ promoter and vice chairman Narendra Murkumbi has stepped down as part of ceding control to co-promoter Wilmar Sugar Holdings under a debt restructuring plan.
As part of the rejig, Singapore-based Wilmar Sugar on Friday acquired additional shares worth Rs 785 crore of the company. With its stake now rising to 38.57 per cent from 27.24 per cent, Wilmar Sugar has also launched a Rs 811 crore open offer for existing shareholders of Renuka Sugars, according to regulatory filings. Post the open offer, Murkumbi group entities would no longer continue as promoters of Renuka Sugars.
Renuka Sugars has signed a binding debt restructuring agreement with banks. lenders would snap up substantial stake in Renuka Sugars in lieu of outstanding debt. The company had a consolidated net debt of around Rs 9,000 crore at the end of March 2016.
Wilmar Sugar Holdings has acquired additional 48.18 crore equity shares of Wilmar Sugar Holdings for a consideration of around Rs 785 crore. Its stake in Renuka Sugars has increased to 38.57 per cent, triggering open offer.
Wilmar Sugar launched an open offer of up to 49.83 crore shares, constituting 26 per cent of the emerging fully diluted voting equity share capital of Renuka Sugars. The open offer price is Rs 16.29 per share, taking the total size at up to Rs 811 crore.
“Narendra Murkumbi has tendered his resignation from his executive position as Vice Chairman and Managing Director of the company,” the filing said. The board has accepted his resignation. However, Murkumbi will continue to hold this position during the notice period, which extends for 90 days or until completion of the open offer being made by Wilmar Sugar Holdings (WSH), whichever is later.