Tata Sons rejects ₹400-cr bid to buy Prabhat Dairy

The board of Tata Sons board had earlier sought a due diligence report on a proposal to buy struggling Jet Airways before taking up the plan for consideration.

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Tata Global Beverages’ proposal to purchase Prabhat Dairy Ltd for about Rs 400 crore has been rejected by Tata Sons board, two people in the know told.

“The board did not see it significant enough to scale up the business in the challenging dairy sector, and instead asked Tata Global Beverages to focus on its core business,” a person with knowledge of the development told the newspaper.

As on 31 December 2017, Rabo held a 14.37% stake, the promoter Nirmal family 50.1%, French development finance institution Proparco 8.68% stake, and mid-market private equity firm TVS Capital 7.57%.

In September 2015, Prabhat Dairy raised around $48 million when it went public with both Rabo and Proparco making partial exits. TVS Capital had invested in the company during the IPO.

Rabo’s stake is worth Rs 230 crore while Proparco and TVS Capital’s stakes are valued at Rs 139 crore and Rs 121 crore, respectively.

Meanwhile, Indonesian ride-hailing firm Go-Jek is close to investing $30 million (Rs 210 crore at current exchange rate) in domestic gaming company Mobile Premier League (MPL), two people in the know told.

The board of Tata Sons board had earlier sought a due diligence report on a proposal to buy struggling Jet Airways before taking up the plan for consideration. The board, headed by N Chandrasekaran, discussed both proposals on November 16, said the report.

This funding reported in November had valued MPL at $12-13 million, The Economic Times report said, adding that the current round will value the gaming company at $150 million.

The online gaming industry in India, which currently stands at $290 million, is expected to grow to $1 billion by 2021, according to a report by Google-KPMG. This growth will primarily be driven by a proliferation of low-cost smartphones among urban and rural populations, increase in the domestic game developer base, and focus on local content with themes, even as the industry sees improved paying propensity by 2021, the report added.

In another development, Oyo Hotels & Homes may get $100 million (Rs 697.7 crore) from Singapore-based ride-hailing company Grab as part of its ongoing $1 billion funding round, The Economic Times reported.

The deal is likely to close in the next few days, two people told The Economic Times. In March, Grab had acquired Uber’s Southeast Asian business. In October last year, Oyo announced the launch of its Indonesia operations.

Grab’s investment in Oyo would be at a valuation of $5 billion. It’s the same valuation Oyo got in September, when the hospitality chain said it will raise $1 billion from a consortium led by SoftBank, a move that would propel the firm to the unicorn club — startups worth $1 billion and more.

Tata Global Beverages sells tea, coffee and water. Tetley, Himalayan Natural Mineral Water, Starbucks are some of the brands under the company.

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