Anil Agarwal-led VedantaBSE 1.89 % arm Cairn IndiaBSE 0.90 % has acquired controlling stake in AvanStrate, a Japanese manufacturer of LCD glass substrate, with an investment of $158 million, the company informed the bourses.
AvanStrate is currently majorly owned by Carlyle Group and is a manufacturer of glass substrates for small and medium sized high-resolution thin film transistor LCD (liquid crystal display) panels.
The transaction consists of three elements, first an acquisition of $ 151 million in existing debt of ASI with face value of $ 299 million from banks. It also includes an acquisition of just over 51% of the equity stake of ASI for a nominal consideration from the Carlyle Group; and extension of a $ 7 million loan to ASI, the statement said.
“Through a combination of these elements, this transaction provides both strategic control and attractive returns to Cairn India. Completion of the acquisition is conditional on consents being obtained from ASI’s existing shareholders and is expected to occur prior to 31 December 2017,” the statement said. Last year, Anil Agarwalcommitted to invest $10-billion in an LCD screen plant, which is scheduled to start production in 2018.
Source: Economic Times