Devyani International Ltd. rose as high as 4.41% after the company informed that has terminated its share purchase agreement with Sapphire Foods Mauritius (SFML) for a secondary sale transaction.
After reaching an intraday high of Rs 155.95, the stock pared gains to trade 1.14% higher at Rs 151.02.
On Wednesday, the company informed the exchanges that while it has terminated its share purchase agreement with Sapphire Foods Mauritius, the proposed merger between Devyani International and Sapphire Foods India will continue as planned.
Arctic International, a subsidiary involved in the transaction, informed the company that the share purchase agreement between SFML and Arctic has been terminated by mutual agreement following commercial discussions.
As a result, SFML will receive equity shares of the merged entity under the approved merger scheme, in line with other shareholders of the transferor company.
Arctic and SFML may continue to explore a secondary transaction, which could be undertaken at a later date subject to agreement between the parties and compliance with applicable laws. However, the secondary sale will no longer be a condition for the merger to take effect.
The termination of the stake sale agreement does not change the share exchange ratio or other terms and conditions of the merger scheme approved by the board on January 1, 2026.
Following the termination of the SPA, Devyani International’s promoter and promoter group holding in the merged entity will stand at 41.99%, compared with 61.37% earlier, while public shareholding will increase to 58.01% from 38.63%.
The board, at its meeting on August 26, approved the amended scheme and amended and restated Merger Framework Agreement to reflect the termination of the SPA. The changes include removing the completion of the secondary sale transaction as a condition precedent for the merger scheme to become effective.
Devyani International said the changes will have no impact on shareholders of either the transferor or transferee company. The merger process will therefore continue in the ordinary course, subject to requisite approvals.
