VARUN BEVERAGES: SOUTH AFRICAN SUBSIDIARY’S ACQUISITION

VARUN BEVERAGES: SOUTH AFRICAN SUBSIDIARY’S ACQUISITION OF CRICKLEY DAIRY REFERRED TO ARBITRATION

• The Beverage Company Proprietary Limited (Bevco), a South African step-down subsidiary of Varun Beverages, had entered into an agreement on March 17, 2026, to acquire 100% equity stake in Crickley Dairy Proprietary Limited. • The proposed acquisition was valued at an enterprise value of ZAR 238 million (₹131.47 crore) and was aimed at diversifying into value-added dairy-based beverages. • The transaction could not be completed as a condition precedent was not fulfilled by the long-stop date of September 30, 2026. • The matter has now been referred to the Arbitration Foundation of Southern Africa (AFSA). • The company has made the required disclosure under Regulation 30 of SEBI Regulations. Impact: Negative — The proposed acquisition will not proceed as originally planned due to non-fulfillment of a condition precedent, while the matter is now subject to arbitration.