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| Exchange Disseminated Time 30/08/2016 12:05:12 | S H Kelkar and Company Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 29, 2016, inter alia, has transacted the following is a material;
The Board considered and approved the acquisition of the Business Undertaking of Gujarat Flavours Pvt. Ltd. (“GFPL”) comprising of Flavours Division alongwith brands viz. Three Birds and Wheel. The acquisition would be through Company’s subsidiary Keva Flavours Pvt Ltd. (“KFL”). KFL seeks to acquire only the flavours business of GFPL.
GFPL is in the business of flavours, food colours, sachharin & fine chemicals since 34 years. GFPL has a manufacturing facility in Vadodara and has presence throughout India. The acquisition would enable broadening of the Group’s Flavours business.
Margins are in line with flavours industry. The acquisition would be on a slump sale basis, for net aggregate consideration of Rs 14.50 Cr plus net working capital. 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 GFPL. Acquisition is targeted to close before December 31, 2016.
A preliminary financial and legal due diligence (DD) is being undertaken. Upon successful completion of DD, KFL and GFPL shall enter into a Business Transfer Agreement and other requisite agreements to complete the acquisition. |
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