CAC Corporation (TSE:4725) entered into definitive agreement to acquire 43.68% stake in Accel Frontline Limited (BSE:532774) from Accel Limited, Accel Systems Group, Inc. and N R Panicker for approximately INR 590 million on December 9, 2013. CAC Corporation will acquire 7.5 million shares at INR 45 per share from promoters. CAC Corporation will acquire 5.5 million new shares at INR 45 per share through preferential allotment and will make a tender offer to acquire 7.7 million shares at INR per share. Pursuant to the completion of the acquisition, preferential allotment and open offer, CAC Corporation will own 51% stake in Accel Frontline Limited of the post preferential allotment capital. On completion of the acquisition of 7.5 million shares of Accel Frontline Limited, the Board, committee and sub Committee of the Board of Accel Frontline Limited will be reconstituted.

The acquisition is subject to regulatory approvals in Japan and India. Accel Frontline's Board approved the transaction. The shareholders of Accel Frontline approved the preferential allotment of shares on January 8, 2014. The preferential allotment of shares took place on January 10, 2014. Harshal Kamdar of Meghraj Capital Advisors Private Limited and Mizuho Securities Co., Ltd. acted as financial advisor, Desai & Chinoy and Momo-o, Matsuo & Namba acted as legal advisors and Sudit K. Parekh & Co. acted as accounting & tax advisors for CAC Corporation. SRS Associates acted as legal advisor for Accel Systems Group, Inc.


CAC Corporation (TSE:4725) completed the acquisition of 43.68% stake in Accel Frontline Limited (BSE:532774) from Accel Limited, Accel Systems Group, Inc. and N R Panicker on January 17, 2014.