Swan Energy Finalises ₹440 Crore Deal for Complete Control of TOPL

On June 24, 2024, Swan Energy Ltd (SEL) announced via a stock exchange filing that its Board of Directors, in a meeting held on the same day, approved the acquisition of 26,21,50,000 equity shares of ₹10 each in Triumph Offshore Private Limited (TOPL) from Indian Farmers Fertiliser Cooperative Limited (IFFCO). This acquisition, executed through a Share Purchase Agreement (SPA), amounts to a total transaction value of ₹440 crore. SEL holds a 51% equity stake in TOPL, and with this acquisition, TOPL will become a wholly-owned subsidiary of SEL.

The acquisition process is being conducted at arm’s length, ensuring fairness and transparency in the transaction. The acquired entity, TOPL, operates in the Floating Storage Regasification industry. The main objective behind this acquisition is to facilitate IFFCO’s exit from TOPL, as they currently hold a 49% equity stake in the company. SEL has thus provided an exit option to IFFCO, aligning with their strategic business decisions.

The acquisition is expected to be completed on or before August 10, 2024. The consideration for this transaction is purely in cash. The shares are being acquired at an approximate price of ₹16.78 per share, as outlined in the SPA. SEL has successfully remitted the first tranche of ₹400 crore to IFFCO, with the remaining balance to be paid in due course.

This acquisition signifies a strategic move for SEL, strengthening its position in the Floating Storage Regasification sector by fully integrating TOPL into its operations. By taking complete control of TOPL, SEL aims to leverage synergies, enhance operational efficiency, and unlock greater value from the combined entity.

Overall, this acquisition underscores SEL’s commitment to expanding its portfolio and solidifying its market presence. The move not only facilitates IFFCO’s seamless exit but also positions SEL for future growth and improved market competitiveness.

About Swan Energy Ltd

Swan Energy Limited, originally founded as Swan Mills Ltd (SML), started as a manufacturer and marketer of cotton and polyester textile products in India. Over time, the company has diversified into the real estate sector and is currently developing a floating storage and regasification unit-based liquid natural gas (LNG) import terminal in Jafrabad, Gujarat.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.