The Ramco Cements Ltd said its Board has approved the sale of the entire stake in its associate company Lynks Logistics Ltd to Bundl Technologies Pvt Ltd, doing business as Swiggy and operating as an online food ordering application.
The transaction is proposed to be carried out through the swapping of shares/sale of shares held in Lynks Logistics and the acquisition of compulsorily convertible preference shares of Bundl Technologies.
The Board at its meeting held on July 12 approved the execution of the share subscription and purchase agreement for the sale and transfer of its entire shareholding (i.e. 49,95,16,202 equity shares) in Lynks Logistics to Bundl Technologies in exchange for 24,18,915 compulsorily convertible preference shares of Bundl to be issued and allotted by Bundl to the Company, Ramco said in a filing to stock exchanges.
Ramco will also be providing representations/ warranties/ indemnities to Bundl in connection with the proposal, the aggregate indemnification liability of the Company not to exceed ₹86.57 crore as per the agreed terms.