Steel pipes, tubes and hollow sections manufacturing major APL Apollo Tubes today said it would acquire Lloyds Line Pipes Ltd at an estimated price of Rs 40 crore.
"The deal would be partly-funded and also by issuing equity shares on preferential basis. The promoters of Lloyds Line Pipes will be alloted 1,136,364 fully paid-up equity shares of APL Apollo Tubes at Rs 176 each and balance of Rs 20 crore will be paid in cash", APL Apollo Tubes said in a statement here.
With this acquisition, APL Apollo would strengthen its capacity from 400,000 TPA to 490,000 TPA, besides reducing lead time for existing customers in the western region, it said.
The release said APL Apollo Tubes also entered into a strategic partnership with Shankara Pipes, largest steel pipes and tubes' distributors.
The company would allot 4.25 lakh fully paid-up equity shares at Rs 176 each for cash to Shankara Pipes, it said. Post the allotments to Lloyds Line Pipes and Shankara Pipes, the paid-up equity share capital would increase from Rs 20.29 crore to Rs 21.85 crore, it said.
"The ongoing developments bear testimony to our focused growth strategy, which would enable us to consolidate our leadership position in a promising market space. The acquisition of Lloyds would aid our presence in new markets and reinforce our position as a pan India player..", APL Apollo Tubes Chairman and Managing Director Sanjay Gupta said.
APL Apollo Tubes is a leading supplier to users from urban infrastructure, automotive, bus bodies, airports, metro sectors, green houses, conveyor systems, scaffoldings, fire-fighting, irrigation, gas and oil transportation, the statement added.
