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Magson Retail and Distribution Announces Exit from Two Associate LLPs

Ahmedabad, India - Magson Retail and Distribution Limited has announced its decision to exit as a body corporate designated partner from Farmags Associates LLP and Food Book Associates LLP. The decision was approved during the company's board meeting held on July 18, 2024. This move is set to take effect from the close of business hours on July 31, 2024.

Key Decisions from the Board Meeting

Disinvestment from Associate Entities

Magson Retail's board, based on the recommendation of the Audit Committee, has approved the disinvestment of its stakes in two associate entities:

Farmags Associates LLP

• Stake and Voting Rights: 30%
• Financial Contribution: 5.57% of total revenue for FY24
• Net Worth Contribution: 0.01%

Food Book Associates LLP

• Stake and Voting Rights: 50%
• Financial Contribution: 5.32% of total revenue for FY24
• Net Worth Contribution: 1.30%

These exits are part of a strategic move to refocus company resources and streamline operations.

Compliance with Regulations

The disinvestment decisions comply with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The associate entities do not fall under the definition of "undertaking" as per Section 180(1)(a) of the Companies Act 2013 and Regulation 37A of SEBI LODR Regulations 2015. Therefore, prior approval from the shareholders is not required.

Additional Details:

• The supplementary agreements for disinvestment will be executed by July 31, 2024.
• The remaining partners, including their family members, will replace Magson Retail in these LLPs.

Financial Impact

The financial impact of these exits is outlined as follows:

• Farmags Associates LLP: Contributed Rs. 3.69 Crores to Magson Retail’s revenue in FY24.
• Food Book Associates LLP: Contributed Rs. 3.52 Crores to Magson Retail’s revenue in FY24.

The total consideration from these exits will include the repayment of fixed and current capital along with the sharing of profits/losses as finalized on the date of retirement.

Moving Forward

Magson Retail and Distribution Limited continues to focus on optimizing its portfolio and enhancing shareholder value. The company ensures transparency and regulatory compliance in all its strategic decisions.

Contact Information:

• Atula Patel
  • Company Secretary
  • Email: corporate@magsonretail.com
  • Membership No.: A60087

Corporate Office: