Synopsis

B9 Beverages, the maker of Bira 91, is attempting to recapitalize amid financial struggles. The company seeks to acquire stakes from major investors like Kirin Holdings and Peak XV Partners. Anicut Capital, its largest lender, has taken over control following disputes with founder Ankur Jain. Settlement offers have been made to creditors and large vendors to facilitate operations.

New Delhi: The newly reconstituted board of B9 Beverages led by Anicut Capital has offered to acquire the stakes of key investors Japan's Kirin Holdings, Peak XV Partners and Belgium's Sofina amid efforts to recapitalise the financially-beleaguered company and raise fresh funds, said people aware of the matter.

B9 Beverages is the maker of craft beer brand Bira 91.

Also Read: From craft beer darling to founder's exit: Bira 91's journey ahead of a revival bid

Incoming investors want the existing backers unwilling to join the revival efforts to exit before any fresh capital is infused, they said.

"One of the preconditions for any new investor, including family offices or PE firms, is that existing investors have to exit," one of the executives said.

Kirin, Peak XV and Sofina hold a combined about 41.1% stake. Bira 91 founder Ankur Jain and his family's stake of 17.8% was taken over by the company's largest lender Anicut Capital, following Jain's exit this July after a two-year-long dispute, amid unpaid salaries and accumulated debt.

Smaller stakes are held by high net-worth individuals (HNIs) and family offices with whom the company's unlisted shares were placed through a distributor.

"Japan's Kirin Holdings, which holds 20.1% stake in B9 Beverages, has engaged EY for the process of its stake sale," said the executive cited above. "While Kirin, which first invested in B9 Beverages in 2021, came aboard with a long-term investment plan, it is now looking to exit the craft beer maker, which is also a synergistic move as part of its global strategy."

Offers for settlements have also been made to some of the financial creditors such as Trifecta Capital, IDFC First Bank and Kirin Holdings, the executive said.

Also Read: Bira 91 beer founder Ankur Jain quits board, gives up control in settlement

"These offers are all subject to an agreement being reached on valuation," a second person said. "The company has liabilities of ₹1,000-₹1,500 crore and operations have been at a standstill for a year now. In this scenario, the value of the brand which is pegged at around ₹300 crore is the only benchmark available."

Financial creditors will also have to take big loan write-offs, with recovery expectations of only about a fifth of their total lending to the company. "A revival plan will require everyone to come on board," another person said. "The fact that the board of directors is being helmed by the company's biggest lender should give confidence to other stakeholders."

Founder Jain and his family gave up their board positions on 22 July in lieu of being relieved of all personal liabilities towards the company. Their shares were kept as security for loans provided by Anicut Capital to B9 Beverages.

The company has also made settlement offers to some of the large vendors, said people in the know.

"About 60 large vendors have also been asked to settle their dues and continue servicing the company," one of the persons said.

Anicut Capital, Kirin, Peak XV and Sofina declined comment to email queries. Trifecta Capital and IDFC First Bank didn't respond to ET's queries.

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