Future Consumer Says Deal To Sell Diary Arm Terminated

Future Consumer Ltd. said the deal to sell its arm Nilgiri Dairy Farm Private Ltd. (NDFPL) to AVA Cholayil Healthcare Private Ltd. stands terminated.

The deal closing could not be achieved within the stipulated timeframe in the business transfer agreement signed between the parties, the food and fast-moving consumer goods company said in a stock exchange announcement.

In August 2023, Future Consumer executed an agreement to sell its NDFPL, which manufactures and sells dairy and bakery products, to AVA Cholayil for 67 crore rupees ($8 million).

The purchase consideration was to be paid in three tranches being: i) 60% on achieving closing, 20% on completion of subsequent first conditions and iii) 20% on completion of subsequent second conditions.

Future Consumer’s proposed deal was part of its strategy to generate liquidity for repayment of debts to the lenders.

Note: $1 = 83.1131 Indian rupees

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