Godrej Agrovet to purchase 45.29% stake in Astec LifeSciences

Mumbai: Godrej Agrovet Ltd, agri-business firm of Godrej Industries Ltd, will purchase 45.29% stake in agrochemicals and pharmaceutical intermediates agency Astec Lifesciences Ltd from its promoters at a worth of Rs190 per share for a complete price of Rs212.17 crore.

The board of administrators of Godrej Agrovet on Saturday mentioned they’ve permitted execution of a share buy settlement with promoters of Astec LifeSciences.

“Additional, such share buy settlement units out sure shareholders’ rights and obligations between Godrej Agrovet and the remaining promoters of the corporate,” Godrej Agrovet mentioned in a submitting to BSE.

Following the transaction, Godrej Agrovet will make an open provide to the shareholders of Astec LifeSciences underneath the rules of capital market regulator.

“Relying on the response of the open provide, Godrej Agrovet could purchase extra shares from the promoters such that Godrej Agrovet’s totals holding reaches 50% plus 1 share of the totally diluted fairness share capital of the Astec LifeSciences after the completion of the open provide,” Godrej Agrovet mentioned.

Godrej Agrovet believes that the corporate will profit from Astec LifeSciences’ experience and robust market place in agri enterprise.

Godrej Agrovet’s induction as a majority shareholder is predicted to considerably improve Astec LifeSciences’s development prospects and aggressive place, Godrej Agrovet mentioned.

Kotak Mahindra Capital Co Ltd acted as unique monetary advisor to Godrej Agrovet for this transaction.

The proposed transaction is topic to varied situations precedent, which embody the sale of the fairness shares held by the Astec LifeSciences of Astec Crop Care Pvt Ltd (ACCPL), an entirely owned subsidiary of the corporate.

On this regard, the board of administrators of the Astec LifeSceinces has additionally permitted execution of a share buy settlement, whereby the corporate has agreed to promote as much as 100% of the entire paid-up fairness share capital of ACCPL to Ashok Hiremath and P.L. Tiwari, the promoters of the corporate for an combination consideration of not lower than Rs50 lakh, which is greater than the truthful worth of ACCPL as per valuation experiences supplied by impartial valuers.

Astec LifeSciences has additionally knowledgeable BSE on a separate submitting in regards to the proposed transaction.

KPMG Company Finance acted as unique monetary advisor to Astec LifeSciences and promoters for this transaction.

In line with its web site, Astec manufactures a variety of agrochemical lively components and pharmaceutical intermediates whereas Godrej Agrovet is into animal feed, oil palm plantations, agri inputs, hybrid seeds and processed poultry.

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