India’s Apollo Micro Systems will acquire a 41.33% stake in defence equipment maker Premier Explosives for 15.5 billion rupees ($162.50 million), the companies said on Thursday.
Here are the details:
- Per India’s takeover regulations, Apollo Micro Systems will also offer to buy up to an additional 26% stake in Premier Explosives from public shareholders at 698 rupees per share.
- Consolidations have risen in India’s fast-growing defence manufacturing sector, which has benefited from increased government spending and a push for local production.
- The deal, expected to complete within five months, is subject to regulatory approvals, including clearance from the Competition Commission of India.
- Premier Explosives, which manufactures high-energy materials, rocket motors, countermeasures and munitions for the defence and aerospace sectors, will continue to operate under its existing brand after the acquisition.
- Apollo Micro said the acquisition combines the companies’ defence systems and energetic materials capabilities, helping expand their participation in defence and space programmes.
