At meeting held on 10 July 2020
The Board of BASF India at its meeting held on 10 July 2020 has approved the acquisition of 100% stake by the Company in BASF Performance Polyamides from BASF Nederland B.V. and BASF SE, for a consideration of an amount not exceeding Rs. 305 crore, including adjustments, if any, at arm's length basis, subject to the approval of the shareholders of the Company, being a related party transaction and such other approvals as may be required in this regard. For this purpose, the Board has also taken into consideration the valuation report issued by Deloitte Touche Tohmatsu India LLP.BASF Performance Polyamides was incorporated on 31 January, 2011 and is into the business of manufacture/trading of performance polyamides and has one manufacturing site in Panoli, Gujarat. It has wide range of engineering plastics (major brand: Technyl) and serves automobiles, electrical and consumer goods. The audited aggregate revenue (Operations & Other Income) of BASF Performance Polyamides for the past 3 financial years i.e. FY 2016-17, FY 2017-18 and FY 2018-19 was Rs.131.42 crore, Rs. 174.13 crore and Rs. 246.85 crore respectively.
The acquisition of BASF Performance Polyamides would strengthen the Company's position as a solution provider for key industries & would enhance market access to key growth markets. It would help the Company in expanding its existing 'Materials' segment and extend value chain through backward integration into key raw materials. The Polyamides business also has operational synergies with the Engineering Plastics business of the Company. The closing of the transaction is expected in the second quarter of the FY 2020-2021.
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