Apollo Tubes plans to acquire Lloyds Line Pipes
Apollo Tubes plans to acquire Lloyds Line Pipes
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 ₹ 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 ₹ 176 each while the balance amount of ₹ 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 ₹ 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 ₹ 20.20 crore to ₹ 21.80 crore.Apollo will also allot 1,651,953 warrants at ₹ 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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