Imagicaaworld Entertainment Limited has informed the Exchange about Acquisition
IMAGICAA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Imagicaaworld Entertainment's Board has approved the acquisition of 100% equity shares of Malpani Parks Ahmedabad Private Limited (MPAPL) from its promoter, Malpani Parks Private Limited, for a cash consideration of up to Rs. 50 crore. Post-acquisition, MPAPL will become a wholly owned subsidiary. The company will also infuse up to Rs. 30 crore into MPAPL to settle its liabilities, taking the total deal value to a maximum of Rs. 75 crore. MPAPL is yet to start operations and plans to develop a water park/entertainment park in Ahmedabad, helping Imagicaaworld expand its footprint in Gujarat where it already operates. The deal is a related party transaction done at arm's length based on an independent valuation, and is subject to shareholder approval.
Short-term: The deal is a related party transaction with the promoter, so minority shareholders will need to approve it at a general meeting. Medium-term: Acquiring land for a large water park in Gujarat could boost Imagicaaworld's growth pipeline, but the Rs. 75 crore outflow is significant relative to the company's size and MPAPL is a pre-revenue entity, so execution and ROI risks remain.