|
| Exchange Disseminated Time | Rallis India Ltd has informed BSE that on December 09, 2010, the Company has entered into definitive agreements to acquire a majority equity stake in Metahelix Life Sciences Private Limited, a Bangalore based Seeds Company.
The Company has submitted to BSE a copy of a press release dated December 09, 2010, in this regards.
Press Release :
"Rallis India Limited, a subsidiary of Tata Chemicals Limited, today announced acquisition of a majority stake of 53.5% in Metahelix Life Sciences, a Bangalore based Seeds research Company with a portfolio of seeds successfully commercialized over the last three years. The acquisition is an all cash deal of Rs. 99.5 Crs. funded largely through internal accruals.
Seeds has been identified as one of the key pillars for Rallis under its 'Rallis Poised' growth agenda. This is In line with the strategy of Tata Chemicals to offer the entire suite of Agri-inputs for the benefit of farm community. Having a strategic connect to agriculture, seeds will provide a value creating proposition for future growth at Rallis. Metahelix Life Sciences is the Company's first inorganic foray in the Seeds space providing a strong platform in the entire value chain that comprises breeding, production and marketing of seeds.
Rallis will subscribe to an additional equity of Rs. 25 Crs. to increase its stake in Metahelix to 59.02% on a fully diluted basis. Furthermore, pursuant to the terms of the definitive agreements signed, Rallis will enhance its shareholding to 100% in Metahelix over a period of five years.
Speaking on the occasion, Mr. V. Shankar, Managing Director & CEO, Rallis India said, "This acquisition aims at predominantly driving the agricultural productivity and yield enhancement in the country. Farmer adoption of good hybrid seeds is rapidly growing and with this new acquired strength, Rallis will be in a firm position to provide a trustworthy portfolio of seeds to the Indian Farmers."
The competencies of Rallis in terms of farmer relationships and channel partnerships would also leverage the offerings from Metahelix. The offerings will supplement the Rallis portfolio and the robust distribution channel available through the Tata Kisan Sansar (TKS) platform will enable a wider reach. This also is an opportunity to drive the synergies that exist between Rallis and Tata Chemicals Limited.
Elaborating on the business prospects, Mr. Shankar added, "We believe that the revenues from the entity will exceed Rs. 1000 Crs. cumulatively over a 5-year period. The deal works out to twice the projected revenues of next year"." (For more details kindly refer Corporate Announcements on www.bseindia.com). |
|
|