M&A

M&A

Indo Borax to acquire 64% stake in specialty fine chemicals co. Kronox Lab for Rs.246-Cr

BSE Announcement   Whalesbook  

Mumbai-based Indo Borax & Chemicals plans to acquire a 64.26% controlling stake in Vadodara-based Kronox Lab Sciences for INR 246.12 crore. The transaction involves the acquisition of 2.38 crore equity shares from the promoters of Kronox Lab Sciences at INR 103.22 per share, which adjusts to an effective price of INR 105.87 inclusive of transition consultancy fees. Zenrock Chemicals Pvt Ltd is acting in concert for this acquisition.Following the primary transaction, Indo Borax is required to launch a mandatory open offer to acquire an additional 25.79% stake in Kronox at INR 157.27 per share.Kronox Lab Sciences operates in the high-purity specialty fine chemicals sector and reported an annual turnover of INR 101.22 crore in the last financial year. Indo Borax intends to use this acquisition to reduce its dependence on its core boric acid operations.Indo Borax plans to fund the acquisition and manage working capital requirements by securing new credit facilities.