Varun Beverages addresses concerns raised by the Securities and Exchange Board of India (SEBI) regarding the termination of agreements to acquire SBC Tanzania Limited and SBC Beverages Ghana Limited. The company clarifies the reasons for the termination, its adherence to disclosure norms, and the impact on its financials. The response includes details about an order by the Securities Appellate Tribunal (SAT).
Acquisition Agreement Termination Clarified
Varun Beverages Limited has issued a statement addressing concerns regarding the terminated acquisition agreements for SBC Tanzania Limited and SBC Beverages Ghana Limited. The company initially disclosed its plans to acquire 100% share capital in both entities but later terminated the agreements due to non-fulfillment of certain conditions.
Response to SEBI Concerns
The Securities and Exchange Board of India (SEBI) raised concerns about delays and adequacy of disclosures related to the terminations. Varun Beverages has clarified the sequence of events, stating that the termination of the agreements occurred on March 31, 2025, due to unmet conditions. The company maintains that while there was a delay, there was no material impact on company operations or financials.
Details of SAT Order
The disclosure includes information regarding an order dated January 9, 2026, from the Securities Appellate Tribunal (SAT). The SAT order directed SEBI to re-examine the matter of mandatory disclosure under LODR (Listing Obligations and Disclosure Requirements) Regulations. Varun Beverages states it is co-operating fully with this review process. The firm’s legal team is addressing queries from authorities.
Ongoing Compliance Efforts
Varun Beverages emphasizes its commitment to complying with all regulatory requirements and has submitted responses and revised disclosures to the stock exchanges and SEBI. The company states that it continues to engage with regulatory bodies to ensure adherence to standards and to keep investors updated on any new material developments.
Source: BSE
