Godrej Agrovet Purchases Stake in Astec Lifesciences
31 August 2015 Godrej Agrovet Ltd, the agribusiness division of Godrej Industries Ltd, will buy 45.29% stake in agrochemicals and pharmaceutical intermediates firm Astec Lifesciences Ltd from a price of Rs 190 ($2.87) per share for a total cost of Rs 212.17 crore ($32.03 million).
“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,” according to a press release from Godrej Agrovet.
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, the company said.
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.
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