DCM Shriram receives the board of directors’ approval for acquiring 1,732,500 equity shares of Shriram Axiall (SAPL) from Axiall LLC, which is an entire 50% of the paid-up share capital held by Axiall LLC in the joint venture.
Shriram Axiall (SAPL) is a 50:50 joint venture between the company and USA-based Axiall LLC.
In its regulatory filing, DCM Shriram said that as per the JV agreement, Axiall LLC has given us the option, either to buy their shares in SAPL or to sell the Company’s shares in SAPL to Axiall LLC.
“The Board of Directors of the Company considered the above options and the proposal to buy the entire 50% shareholding held by Axiall LLC in SAPL, has been approved by the Board,” it added.
Post-acquisition, SAPL will become the wholly-owned subsidiary of DCM Shriram.
The cost of acquisition is at Rs 137.49 ($18.7) per share aggregating to over Rs 23.80 crores ($3.2 million). The transaction is expected to complete within 30-40 days.
Shriram Axiall is one of the largest organized players for PVC compounds in India and has world class manufacturing facility at Kota that started in 1964. The joint venture operates an installed production capacity of 35,000 MTPA for customised Vinyl compounds.