Apollo Tubes plans to acquire Lloyds Line Pipes

Apollo Tubes plans to acquire Lloyds Line Pipes
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First Published: Tue, Sep 21 2010. 11 37 PM IST
Updated: Tue, Sep 21 2010. 11 37 PM IST
Mumbai: APL Apollo Tubes, maker of steel pipes and tubes on Tuesday announced plans to acquire Lloyds Line Pipes Limited, a Maharashtra-based manufacturer of steel tubes and pipes.
The acquisition is valued at Rs 40 crore and will be paid partly in cash and partly by issuing equity shares on preferential basis. The promoters of Lloyds Line Pipes will be allotted 1,136,364 fully paid-up equity shares of APL Apollo Tubes at Rs 176 each while the balance amount of Rs 20 crore will be paid in cash, Apollo said.
The acquisition will strengthen Apollo’s capacity to 490,000 tonnes per annum from the existing 400,000 tonnes annually. The company has also signed a strategic partnership with Shankara Pipes and will allot 4,25,000 fully paid-up equity shares at Rs 176 each for cash, to Shankara Pipes.
Following the allotments to Lloyds Line Pipes and Shankara Pipes, the paid-up equity share capital will increase from Rs 20.20 crore to Rs 21.80 crore.Apollo will also allot 1,651,953 warrants at Rs 176 each, compulsorily convertible into equity shares within 18 months from the date of their allotment, to APL Infrastructure Private Limited, a promoter group entity. This allotment would result in increase in promoter’s shareholding from existing 40.65% to 42.09%.
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First Published: Tue, Sep 21 2010. 11 37 PM IST