|
| Exchange Disseminated Time 14/02/2017 15:44:21 | S H Kelkar and Company Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 14, 2017, inter alia, has transacted the following;
1. The Board considered and approved the proposal to acquire and develop the Intellectual Property (IP) in Fragrance Encapsulation Technology (FET) held by Tanishka Products (TP), a partnership firm set up in 2012. TP is into business of manufacture and sale of micro-encapsulated fragrances. The acquisition would be done through one of its group companies, Keva Chemicals Pvt. Ltd. (KCPL). As a part of the transaction, KCPL shall invest into capital & take majority control of Tanishka Products LLP (TP LLP) to be set up.
TP's turnover for last 3 years is not relevant. Acquisition of FET would enable the Company to offer differentiated fragrance products and systems.
The consideration payable towards acquisition of perpetual FET license and capital investment in TP LLP would be Rs. 3 Cr + an amount payable at the end of 5 years, equivalent to a portion of the revenues of KCPL that would be generated in FET sales using the IP in FET. The consideration would be paid by cheque.
KCPL shall fund around Rs. 3.75 Cr for the running of encapsulations business from TP LLP after closing date of transaction. Any funding over an amount of Rs 3.75 Cr shall be adjusted against the consideration payable to TP LLP
Requisite approvals and consent from governmental /regulatory authorities in connection with the acquisition shall be obtained. The proposed acquisition is not a related party transaction and the promoters/promoter group/group companies do not have any interest in TP. Acquisition is targeted to close before April 02, 2017.
A preliminary financial and legal due diligence (DD) is being undertaken. Upon successful completion of DD, KCPL and TP LLP shall enter into requisite agreements to complete the acquisition. |
|
|