Fairfax India Holdings Corporation announce on Friday that through its wholly-owned subsidiaries (collectively, Fairfax India), has completed its previously announced acquisition of approximately 51 percent of the outstanding shares of Privi Organics Limited (Privi Organics). Aggregate consideration is $55 million (around Rs 370 crore).
Earlier, the board of directors of Adi Finechem Limited (Adi Finechem) and Privi Organics has approved a merger arrangement involving the two companies to build an Indian speciality chemicals champion, with both companies converting renewable waste feedstocks into value-added speciality chemicals.
Fairfax India has acquired a 44.9 percent equity ownership in Adi Finechem in the first quarter of 2016.
After the merger arrangement comes into effect, Fairfax India will own around 49 per cent in the merged business.
The proposed merger is subject to customary regulatory approvals including a court approval process and is expected to occur in the first quarter of 2017. Adi Finechem and Privi Organics would continue to operate as distinct and independent business units, according to Fairfax statement.
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Source: Business-Standard