UPL Ltd. has announced a strategic corporate realignment by creating distinct ‘pure-play’ business platforms – to unleash growth potential for each of these platforms through enhanced focus (led by specialised and dedicated teams) and efficient deployment of resources.

The realignment will unlock value for UPL shareholders by facilitating fair value recognition of the distinct pure-play platforms.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Brookfield and TPG to invest Rs. 1,580 crore (US $200 mn) for 9.09% stake in UPL SAS - India Agtech Platform at an equity valuation of around Rs. 17,380 crore (US $2.2 bn).

KKR to invest US $300 Mn (Rs. 2,460 crore) for 13.33% stake ‘Advanta Enterprises - Global Seeds Platform’ at an equity valuation of around US $2.25 bn (Rs. 18,450 crore).

A wholly owned subsidiary of the Abu Dhabi Investment Authority and TPG to hold 22.2% stake in UPL Cayman, which will be the Global Crop Protection Platform (ex-India).

These investments are independent transactions for which separate agreements have been agreed pursuant to negotiations between each of the investors and UPL Ltd.

Jai Shroff, Global CEO said, “Our commitment to transform the global food value chain will now receive even more impetus with the creation of these distinct pure-play platforms. This shall enable to bring in enhanced focus, ensure better allocation & utilization of resources and outcome-oriented solutions to farmers."

"In addition, it has enabled ‘fair value recognition’ of each ‘Individual Platform’ with investments from distinct marquee global investors resulting in significant unlocking of value for UPL’s existing shareholders. More importantly, this provides us an opportunity to unleash the growth potential of each of our distinct platforms to deliver accelerated and sustainable growth,” added Shroff.

The Corporate Realignment exercise is ‘envisaged to complete over the course of next 45-90 days’, subject to customary closing conditions and required approvals (shareholder, regulatory, and lender approvals).