Godrej Agrovet to buy 45.29% stake in Astec LifeSciences1 min read . Updated: 29 Aug 2015, 02:58 PM IST
The board of directors of Godrej Agrovet said they have approved execution of a share purchase agreement with promoters of Astec LifeSciences
Mumbai: Godrej Agrovet Ltd, agri-business company of Godrej Industries Ltd, will buy 45.29% stake in agrochemicals and pharmaceutical intermediates firm Astec Lifesciences Ltd from its promoters at a price of Rs190 per share for a total cost of Rs212.17 crore.
The board of directors of Godrej Agrovet on Saturday said they have approved execution of a share purchase agreement with promoters of Astec LifeSciences.
“Further, such share purchase agreement sets out certain shareholders’ rights and obligations between Godrej Agrovet and the remaining promoters of the company," Godrej Agrovet said in a filing to BSE.
Following the transaction, Godrej Agrovet will make an open offer to the shareholders of Astec LifeSciences under the guidelines of capital market regulator.
“Depending on the response of the open offer, Godrej Agrovet may acquire additional shares from the promoters such that Godrej Agrovet’s totals holding reaches 50% plus 1 share of the fully diluted equity share capital of the Astec LifeSciences after the completion of the open offer," Godrej Agrovet said.
Godrej Agrovet believes that the company will benefit from Astec LifeSciences’ expertise and strong market position in agri business.
Godrej Agrovet’s induction as a majority shareholder is expected to significantly enhance Astec LifeSciences’s growth prospects and competitive position, Godrej Agrovet said.
Kotak Mahindra Capital Co Ltd acted as exclusive financial advisor to Godrej Agrovet for this transaction.
The proposed transaction is subject to various conditions precedent, which include the sale of the equity shares held by the Astec LifeSciences of Astec Crop Care Pvt Ltd (ACCPL), a wholly owned subsidiary of the company.
In this regard, the board of directors of the Astec LifeSceinces has also approved execution of a share purchase agreement, whereby the company has agreed to sell up to 100% of the total paid-up equity share capital of ACCPL to Ashok Hiremath and P.L. Tiwari, the promoters of the company for an aggregate consideration of not less than Rs50 lakh, which is more than the fair value of ACCPL as per valuation reports provided by independent valuers.
Astec LifeSciences has also informed BSE on a separate filing about the proposed transaction.
KPMG Corporate Finance acted as exclusive financial advisor to Astec LifeSciences and promoters for this transaction.
According to its website, Astec manufactures a wide range of agrochemical active ingredients and pharmaceutical intermediates while Godrej Agrovet is into animal feed, oil palm plantations, agri inputs, hybrid seeds and processed poultry.