India's Jain Irrigation soars on deal with Temasek-owned Rivulis, debt slash

Jain Irrigation Systems

22/06/2022 05:12

** Shares of Jain Irrigation Systems Ltd  JAIR.NS  rise as
much as 16.8% to near two-month high of 43.8 rupees in a weak
broader market
    ** JAIR said on Tuesday it would sell a 78% stake in its
international irrigation business to Temasek-owned
micro-irrigation company Rivulis  urn:newsml:reuters.com:*:nFWN2Y80HU
    ** Deal to slash JAIR's consolidated debt by around 45%,
including all restructured overseas bonds of $225 mln and
complete debt of overseas operating companies
    ** Jain International to continue to hold 22% in merged
entity, with Temasek holding 78%
    ** JAIR to have long-term supply agreement with merged
entity, which will have $750 mln in revenues
    ** New co to be dual headquartered in Singapore and Israel
and will continue to be named Rivulis Pte Ltd; current Rivulis
CEO Richard Klapholz to lead co
    ** JAIR shares had risen 20% on Tuesday ahead of the news
    ** More than 12.9 mln shares change hands by 0404 GMT vs the
30-day avg of 2.2 mln shares
    ** Stock down 9.9% this year, as of last close

 (Reporting by Chris Thomas in Bengaluru)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))