Alfacam, Hinduja negotiations continue
The Commercial Court of Antwerp has granted an extension to Alfacam Group regarding its ongoing negotiations to become part of India’s largest industrial groups, Hinduja. If talks are concluded successfully, the deal would herald the end to a problematic period for Alfacam that has seen it make repeated attempts to source much-needed new investment.
Protection for the negotiations has now been granted until 5 May, with Alfacam diue to submit a restructuring plan on 15 April at latest. Alfacam’s board of directors has said it is pleased with the discussions to this point and is looking forward to reaching an agreement with Hinduja Group ‘as early as possible’.
In the wake of financial, tax, legal and commercial due diligence, Hinduja Group has reiterated its intention to proceed with negotiations along the lines of the Memorandum of Understanding signed on 11 December.
In the event that it is completed, the transaction will result in a ‘significant controlling stake’ for Hinduja Group which may result in dilution of the existing shareholders.