The Analjit Singh-promoted Max India Ltd has decided to sell Max Pharma, its wholly owned division, to Jubilant Organosys (formerly Vam Organic Chemicals Ltd), the largest manufacturer of specialty chemicals in the country.
Jubilant Organosys will pay Max India Rs 62.2 crore for the acquisition and will also incur transaction-related expenses of Rs 6.8 crore, bringing the entire cost of acquisition to Rs 69 crore. Jubilant intends to finance the acquisition through internal accruals and borrowings.
The boards of both Max India and Jubilant Organosys gave approval to the decision today. The acquisition is likely to be completed by November.
In the transaction, Jubilant Organosys was advised by Pricewaterhouse Coopers (PwC), while Rabo Bank represented Max India.
