Held on 29 September 2014
Sudarshan Chemical Industries announced that the Board of Directors of the Company at its meeting held on 29 September 2014, has resolved the following:-1. Rieco Industries -
To acquire 100% of the paid up equity share capital of RIECO Industries by virtue of which it shall become a wholly owned subsidiary of the Company. The consideration was worked out on the basis of valuation recommended by E&Y. The Legal Due Diligence was carried out by M/s. Crawford Bayley & Co. The Audit Committee after due consideration of the business prospects as also considering the interest of minority shareholders, approved a total consideration of Rs. 16 crore. The acquisition will be effective from 01 October 2014. The consideration of Rs. 16 crore will be brought in by the shareholders of RIECO Industries as ICDs / FDs in Sudarshan.
RIECO Industries is owned by Rathi Family and has been in business for the last 35 years. The Company manufacturers Pneumatic Control Industrial Systems, Size Reduction and Pollution Control Equipments etc. The turnover of RIECO Industries for the year ended 31 March 2014 is approximately Rs. 90 crore.
The current investment in the share capital of RIECO Industries is expected to add value to all stakeholders of the Company as the Company operates in a segment which has got good potential for growth.
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2. Rathi Vessels & Systems -
To acquire the business of Industrial Mixers of Rathi Vessels & Systems (RVSPL) as a going concern on slump sale basis for a total consideration of Rs. 2.5 crore. The consideration was worked out on the basis of valuation recommended by E&Y. The Legal Due Diligence was carried out by M/s. Crawford Bayley & Co. The Audit Committee after due consideration of the business prospects as also considering the interest of minority shareholders, approved a total consideration of Rs. 2.5 crore. The acquisition will be effective from 01 October 2014. The consideration of Rs. 2.5 crore will be brought in by share holders of RVSPL as ICDs / FDs in Sudarshan.
RVSPL is owned by Rathi Family (promoters of Sudarshan) and has been in business for the last 6 years. RVSPL manufacturers Industrial Mixers for varied applications. The turnover of RVSPL for the year ended 31 March 2014 is approximately Rs. 33 crore.
The acquisition of Industrial Mixers business of RVSPL is expected to add value to all stakeholders of the Company as the Company operates in a segment which has got good potential for growth.
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