SRF, the domestic market leader in technical textiles, refrigerant gases and a preferred supplier of other fluorochemical products and polyester films, will acquire the engineering plastic business and industrial yarn business of SRF Polymers (SRFP) for Rs 151.6 crore.
The decision, taken by the SRF board in a meeting held on the last Friday, was on the basis of a valuation conducted by KPMG India, one of the major international accounting and consulting firms. SRF’s offer was accepted by the SRFP board in a meeting held separately today.
The effective date for the transaction shall be 1 January 2009. Earlier in October 2008, the board of SRFP had informed the stock exchange about its decision to seek approval of the shareholders through postal ballot for disposing of its both the businesses.
With this business acquisition, SRF’s turnover will increase from nearly Rs 1,700 crore to about Rs 2,000 crore, and will enable further consolidation through greater synergies between businesses.