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Swiggy To Acquire LYNK From Ramco Cements, Ramco IndustriesOn-demand convenience platform Swiggy will acquire FMCG retail distribution firm Lynks Logistics Ltd (LYNK) from The Ramco Cements Ltd and Ramco Industries in share swap deals, the companies said on Thursday.
Swiggy said it has entered into a definitive agreement to acquire LYNK paving the way for it to enter India's food and grocery retail market with a technology-led distribution platform.
In a regulatory filing, The Ramco Cements said it will sell over 49.95 crore equity shares held by it in Lynks Logistics Ltd to Bundl Technologies Pvt Ltd, which operates under the Swiggy brand.
Simultaneously, Ramco Cements said it will "acquire 24,18,915 compulsory convertible preference shares of Bundl Technologies in consideration of the sale of shares in consideration of the sale of shares."
"The company will also be providing representations / warranties / indemnities to Bundl in connection with the proposal, the aggregate indemnification liability of the company not to exceed Rs 86.57 crore as per the agreed terms under the SSPA, subject to any closing date adjustments on account of working capital and net debt of Lynks," The Ramco Cements said.
Ramco Industries in a separate filing also said its board in a meeting held on July 12, 2023, approved the execution of the share subscription and purchase agreement (SSPA) for sale and transfer of its entire shareholding of over 46.15 crore equity shares in Lynks to Bundl Technologies in exchange for 22,35,223 compulsorily convertible preference shares (CCPS) of Bundl.
"The company will also be providing representations/warranties/indemnities to Bundl in connection with the proposal, the aggregate indemnification liability of the company not to exceed Rs 79,99,19,268 as per the agreed terms under the SSPA, subject to any closing date adjustments on account of Working Capital and Net Debt of Lynks," it added.
In its statement, Swiggy said LYNK will continue to operate as an independent business post the acquisition led by its co-founder and CEO Shekhar Bhende.
"With this acquisition, Swiggy enters India's food and grocery retail market, which is amongst the world's largest and fastest-growing, estimated to be more than USD 570 billion in size and expected to grow at 8 per cent year-on-year," it noted.
Swiggy CEO Sriharsha Majety said LYNK is uniquely positioned in the retail distribution space with their brand-first, tech-led operating model and has demonstrated success with multiple FMCG brands.
"Our experience in supply chain and logistics gives Swiggy the unique opportunity to help LYNK scale up their offerings and empower retailers to serve their customers better," he added.
Bhende said over the last few years, LYNK has focused squarely on helping FMCG brands to meet their retail ambitions.
"With Swiggy, we now hope to further accelerate our growth and double down on the tremendous opportunity before us," he added.
LYNK has a retail presence through its network of over 1 lakh stores across the top eight cities. Post the transaction it will leverage Swiggy's strength in technology and logistics to rapidly scale the existing platform.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Swiggy said it has entered into a definitive agreement to acquire LYNK paving the way for it to enter India's food and grocery retail market with a technology-led distribution platform.
In a regulatory filing, The Ramco Cements said it will sell over 49.95 crore equity shares held by it in Lynks Logistics Ltd to Bundl Technologies Pvt Ltd, which operates under the Swiggy brand.
Simultaneously, Ramco Cements said it will "acquire 24,18,915 compulsory convertible preference shares of Bundl Technologies in consideration of the sale of shares in consideration of the sale of shares."
"The company will also be providing representations / warranties / indemnities to Bundl in connection with the proposal, the aggregate indemnification liability of the company not to exceed Rs 86.57 crore as per the agreed terms under the SSPA, subject to any closing date adjustments on account of working capital and net debt of Lynks," The Ramco Cements said.
Ramco Industries in a separate filing also said its board in a meeting held on July 12, 2023, approved the execution of the share subscription and purchase agreement (SSPA) for sale and transfer of its entire shareholding of over 46.15 crore equity shares in Lynks to Bundl Technologies in exchange for 22,35,223 compulsorily convertible preference shares (CCPS) of Bundl.
"The company will also be providing representations/warranties/indemnities to Bundl in connection with the proposal, the aggregate indemnification liability of the company not to exceed Rs 79,99,19,268 as per the agreed terms under the SSPA, subject to any closing date adjustments on account of Working Capital and Net Debt of Lynks," it added.
In its statement, Swiggy said LYNK will continue to operate as an independent business post the acquisition led by its co-founder and CEO Shekhar Bhende.
"With this acquisition, Swiggy enters India's food and grocery retail market, which is amongst the world's largest and fastest-growing, estimated to be more than USD 570 billion in size and expected to grow at 8 per cent year-on-year," it noted.
Swiggy CEO Sriharsha Majety said LYNK is uniquely positioned in the retail distribution space with their brand-first, tech-led operating model and has demonstrated success with multiple FMCG brands.
"Our experience in supply chain and logistics gives Swiggy the unique opportunity to help LYNK scale up their offerings and empower retailers to serve their customers better," he added.
Bhende said over the last few years, LYNK has focused squarely on helping FMCG brands to meet their retail ambitions.
"With Swiggy, we now hope to further accelerate our growth and double down on the tremendous opportunity before us," he added.
LYNK has a retail presence through its network of over 1 lakh stores across the top eight cities. Post the transaction it will leverage Swiggy's strength in technology and logistics to rapidly scale the existing platform.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)