KKR completes $300 million investment in UPL's seeds business

Date:12-21-2022

UPL Ltd., announces the completion of investment of Rs 24.74 billion ($300 Mn) by KKR for 13.33% stake in Advanta Enterprises.

This is a part of the larger corporate realignment exercise announced in October 2022 to create four distinct business platforms – Global Crop Protection (ex-India), India Agtech, Global Seeds and Manufacturing & Specialty Chemicals to unleash growth potential of each of these platforms and unlock value for UPL shareholders by facilitating ‘fair value recognition’ of each platform.

On October 21, UPL announced that ADIA, Brookfield, KKR and TPG will separately invest Rs 4,040 crore for minority stakes in UPL’s pure-play business platforms.

UPL in October had announced a strategic corporate realignment by creating distinct pure-play business platforms – to unleash growth potential for each of these platforms through enhanced focus and efficient deployment of resources. The company in a statement said the realignment would unlock value for UPL shareholders by facilitating ‘fair value recognition’ of the ‘distinct pure-play platforms’.

The statement in October said a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Brookfield and TPG to invest Rs 15.80 billion for 9.09 per cent stake in UPL SAS — India Agtech Platform at an equity valuation of Rs 173.8 billion. KKR to invest $300 million (Rs 24.74 billion) for 13.33 per cent stake in Advanta Enterprises — global seeds platform at an equity valuation of $2.25 billion.

A wholly-owned subsidiary of the Abu Dhabi Investment Authority and TPG to hold 22.2 per cent stake in UPL Cayman, which will be the global crop protection platform.