Having signed a Memorandum of Understanding (MoU), TV facilities specialist Alfacam Group and global conglomerate Hinduja Group are to begin negotiating a full agreement for Alfacam to join the ranks of one of India’s largest industrial groups.
The prospective deal promises to bring an end to a problematic period for Alfacam that has seen it make repeated attempts to source much-needed new investment and, in mid-October, file for Chapter 11 protection.
The successful conclusion of a Hinduja/Alfacam will deliver a new credit facility to a total of 24 million euros – a development that will replace “almost all” of the current financial debt of Alfacam and its affiliate companies – as well as a cash equity injection of 6 million euros to strengthen Alfacam Group’s capital.
In a joint statement, Alfacama and Hinduja said that the exact structuring and technical implementation of the transaction are still to be determined. The terms of the MoU, meanwhile, are dependent upon normal due diligence processes, which are due to be completed before mid-January.
The two organisations say that, once complete, the deal will allow Alfacam to embark upon a new phase in which it can “fully concentrate on its strengths, namely its operational power, its commercial drive and its innovative vision.”
