Lenders Discipline letter of intent to Malpani Group for Rs 575-crore Imagicaa takeover

Lenders to

obtain issued a letter of intent (LoI) to Ahmednagar-based Malpani Group to make a decision out over the debt-weighted down theme park company, bringing the seven-month-outdated resolution direction of one step some distance off from completion, talked about two of us discontinuance to the pattern.

The LoI used to be issued on Friday after some final-minute drama when a new bidder made an enquiry in the Swiss self-discipline round, they talked about.

“A runt identified US-based investor made an application in the Swiss self-discipline round and, in accordance with norms, banks gave them a pair of days to deposit Rs 15 crore as guarantee, which they are going to furthermore no longer fulfil, and, in consequence, Malpani has been declared the winning bidder,” a particular person occupied with the deal talked about.

In step with the terms agreed to by lenders, Malpani’s provide totals Rs 575 crore. Below the proposed deal, Malpani Group will obtain a 70% stake in Imagicaaworld valued at Rs 500 crore, and lenders will retain a 13% stake, price Rs 75 crore.

This constitutes a 59% haircut for lenders led by

.

Contemporary promoter, smartly-known Bollywood producer Manmohan Shetty can even retain a residual stake in the company put up the deal.

Malpani’s hobby in Imagicaa used to be first reported by ET in October 2021. Lenders initiated a one-time settlement with the latest promoter out of doorways the financial kill direction of to construct clear a brief resolution. BoB Capital Markets, the funding banking arm of

(BoB) is the sole direction of consultant for the transaction.

The pattern of the deal used to be changed to lead clear of an originate provide and other regulatory approvals which will more than likely be time drinking.

The deal now envisages two transactions – Aditya Birla ARC will purchase the debt from banks and switch it to Malpani Group, that would possibly perchance well furthermore decide equity stake in the company.

Imagicaa is probably going to call for an phenomenal frequent assembly on June 10 to approve the transaction.

Union Bank of India is an necessary creditor to the company with a essential loan of Rs 323 crore, adopted by Bank of Baroda at Rs 237 crore.

Imagicaa owns multiple theme parks around Mumbai and Pune. Shetty owns 31% of it straight away and circuitously.

“The deal now is that Malpani will train shares to the lenders at Rs 15.50 a portion, which is higher than what used to be envisaged earlier and should always accumulated lead to diminish replacement of shares for banks, but lenders are assured that they are going to constructing up with the upside in valuations one day,” a 2d particular person aware of the transaction informed ET.

Imagicaa has been going through financial pressures ensuing from rising prices in the final couple of years. These pressures had been compounded ensuing from the Covid-19 pandemic, which shut down theme parks internationally.

Alternatively, losses obtain contracted at the end of March 2022 as footfalls obtain increased and revenues obtain gone up. The company made a consolidated obtain loss of Rs 31 crore for the latest quarter, down from Rs 56 crore a year ago, and Rs 59-crore loss for the quarter ended December 2021.

The company’s inventory label had touched a 52-week high of Rs 18.53 in April. It ended Friday at Rs14.38, up 4.28%, on the BSE.

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