DSK Legal helms Citizen Industries sell its Bengaluru facility to Daikin
The deal worth Rs 125 crore will enable Japanese air-conditioning major increase its footprint in the commercial air
DSK Legal helms Citizen Industries sell its Bengaluru facility to Daikin The deal worth Rs 125 crore will enable Japanese air-conditioning major increase its footprint in the commercial air-conditioning segment and offer a complete solution in India Helmed by DSK Legal, shareholders of Citizen Industries Limited (Citizen) have sealed a lucrative deal with the Japanese...
DSK Legal helms Citizen Industries sell its Bengaluru facility to Daikin
The deal worth Rs 125 crore will enable Japanese air-conditioning major increase its footprint in the commercial air-conditioning segment and offer a complete solution in India
Helmed by DSK Legal, shareholders of Citizen Industries Limited (Citizen) have sealed a lucrative deal with the Japanese multinational air-conditioning major Daikin Air conditioning India Private Limited (Daikin) to sell their Bengaluru plant.
DSK Legal advised Citizen's shareholders Kamlesh Mehta and Praful Patel and their respective family members (Sellers) sale of their 100 per cent shareholding in Citizen and sale of manufacturing facility located in Bengaluru to Daikin for Rs. 125 crore.
The DSK Legal team that advised Citizen comprised of Mr Hemang Parekh (Partner), Mr Jayesh Kothari (Principal Associate) and Mr Supallab Chakraborty (Associate).
Founded in 1995, Citizen is engaged in the business of manufacturing, trading, assembling and supplying of products used in varied industries such as AHUs (including fans, fan coil units and coils specifically for AHUs; fan coil units and HVAC coils (whether or not used in AHU; coils for AHUs, fan coil units and other HVAC applications (Business). Citizen has state of art manufacturing facilities in Ahmedabad and Bengaluru and employs over 650 persons.
Daikin is one of the leading manufactures of air-conditioners (both domestic and commercial) in India. Daikin intends to increase its business volume in India by combining the air-handling and coil manufacturing units of Citizen with its pan India business of manufacturing air-conditioners. The deal will help Daikin further strengthen its position in the commercial air-conditioning segment.
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 Definitive Documents pertaining to this deal were executed on 15 December2020 while its closure is pending.
Ms Pallavi Joshi and Mr Siddharth Shah assisted in drafting the sale deed and property-related documents for the sale of the Bengaluru premises of the Citizen factory. ICICI Securities are acting as the financial advisor to Citizen.
Daikin is being represented by Pioneer Legal (legal advisors) and KPMG (financial advisors).
The deal is expected to further bolster Daikin's presence in India, particularly in the commercial air-conditioning segment. 75 per cent of Daikin's Rs. 5,000 crore business in India came from the domestic market. The deal with Citizen would enable Daikin to emerge as a complete player in the air-conditioning market offering a complete solution.