Devyani, Sapphire Foods restructure merger terms after stake sale falls through

Devyani International and Sapphire Foods have announced modifications to their merger scheme after a previously planned equity transaction failed to materialize. The changes come in the wake of the termination of SFML's intended 18.5 per cent stake sale to Arctic International, which was originally expected to reshape the ownership structure ahead of the combination.

Under the revised merger framework, promoter SFML will now participate in the merger on identical terms applicable to other Sapphire Foods shareholders, eliminating the preferential arrangements that had been contemplated under the earlier structure. This recalibration simplifies the transaction while maintaining the fundamental rationale for combining the two restaurant and food service entities.

The two companies have a combined presence across quick-service and casual dining formats in India. The merger is expected to create enhanced operational synergies and strengthen their competitive positioning in the organized food service sector. Both entities serve overlapping consumer bases across metropolitan and emerging urban markets.

The revised scheme will now require regulatory approvals from relevant authorities and shareholder consent from both companies. The timeline for completing the merger remains subject to the receipt of all necessary clearances and the satisfaction of customary closing conditions.