DSK Legal advises the shareholders of Citizen Industries Limited
DSK Legal advised the shareholders of Citizen Industries Limited ("Citizen"), Mr. Kamalesh Mehta and Mr. Praful Patel
DSK Legal advises the shareholders of Citizen Industries Limited DSK Legal advised the shareholders of Citizen Industries Limited ("Citizen"), Mr. Kamalesh Mehta and Mr. Praful Patel and their respective family members ("Sellers") with respect to: (i) the sale of their 100% (one hundred percent) shareholding in Citizen; and (ii) sale of manufacturing facility situated in Bengaluru owned by...
DSK Legal advises the shareholders of Citizen Industries Limited
DSK Legal advised the shareholders of Citizen Industries Limited ("Citizen"), Mr. Kamalesh Mehta and Mr. Praful Patel and their respective family members ("Sellers") with respect to: (i) the sale of their 100% (one hundred percent) shareholding in Citizen; and (ii) sale of manufacturing facility situated in Bengaluru owned by Mr. Kamalesh Mehta, to Daikin Air-conditioning India Private Limited (a subsidiary of a Japanese multinational company Daikin Industries Limited) ("Daikin") for an amount aggregating up to INR 125,00,00,000 (Indian Rupees One Hundred Twenty Five Crores only).
Founded in the year 1995, Citizen is engaged in the business of manufacturing or trading or assembling or supplying of the following products used in varied industries: (a) AHUs (including fans, fan coil units and coils specifically for AHUs); (b) fan coil units and HVAC coils (whether or not used in AHU); and (c) coils for AHUs, fan coil units and other HVAC applications ("Business"). Citizen has state of art manufacturing facilities in Ahmedabad and the other in Bengaluru and employs in excess of 650 employees.
Daikin is one of the leading manufacturers of air-conditioners (both domestic and commercial) in India. Through this deal Daikin proposes to combine the air-handling and coil manufacturing units of Citizen with its pan India business of manufacturing air-conditioners. This deal is aimed to help Daikin in strengthening its position in commercial air-conditioning market.
According to Daikin Air-conditioning India MD & CEO Kanwal JeetJawa, "Integration of Citizen's business would result in acquisition of ongoing air-side maintenance contracts, expansion into the applied and VRV solution business (including airside), a horizontal collaboration with American Air Filter (AAF) and catalyse economies of scale at the Daikin India Neemrana, Rajasthan factory and its R&D centre."
DSK Legal assisted Citizen and the Sellers in inter alia: (i) drafting/reviewing/revising of the share purchase and share-subscription agreement ("SPSSA"); (ii) drafting/reviewing/revising of documents ancillary to the SPSSA such as the disclosure letter, property documents, employment agreements, etc.
The date of Execution of the Definitive Documents was onDecember 15, 2020.
The team representing DSK Legal comprises of Mr. Hemang Parekh (Partner), Mr. Jayesh Kothari (Principal Associate) and Mr. Supallab Chakraborty (Associate).
Ms. Pallavi Joshi and Mr. Siddharth Shah assisted in drafting the sale deed and property related documents for sale of factory premises situated in Bengaluru.
ICICI Securities are acting as the financial advisor to Citizen.
Daikin is being represented by Pioneer Legal (legal advisors) and KPMG (financial advisors)