India Value Fund Advisors has acquired National Bulk Handling Corporation (NBHC) for ₹2.42 billion (US$40 million).
NBHC is a subsidiary of Financial Technologies India (FTIL). FTIL along with the other shareholders of NBHC entered into a share purchase agreement to sell the entire equity of the company to India Value Fund Trustee Company, the sole trustee of India Value Fund IV. The transaction is subject to certain customary closing conditions including approval by FTIL’s shareholders.
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Luthra & Luthra advised India Value Fund on the transaction. The team was led by partners William Vivian John and Deepak THM along with associate Hemant Krishna V. J Sagar Associates represented FTIL and other sellers and DSK Legal conducted the due diligence for India Value Fund.
The transaction was challenging as it involves the sale of NBHC at a time when the Financial Technologies group is facing a host of investigations, regulatory scrutiny and investor litigation. The investigations relate to the commodity spot market operated by one of its group companies, National Spot Exchange Limited.
John and Deepak THM told India Business Law Journal that it was difficult to elaborate on the transaction given the sensitivities involved. However, the explained that some of the challenges included “advising the client on risk mitigation steps, and negotiating for the implementation of measures necessary to shield the target from various risks, including proceedings against FTIL seeking to restrain dispositions of its assets”.
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