 "Canada's Fairfax acquires 45% stake in ADI Finechem for Rs 130 cr")
Fairfax India Holdings Corporation, through its wholly-owned subsidiaries, on November 4, 2015 entered into an agreement with existing shareholders of ADI Finechem Limited to acquire approximately 45% of the outstanding shares of ADI at a price per share of Rs 212 per share for total consideration of approximately Rs 130 crore (approximately $ 20 million at current exchange rates).
Further, Fairfax India will also make an open offer for an additional 26 percent of the shares outstanding of ADI Finechem in accordance with applicable regulations of the Securities and Exchange Board of India (SEBI).
ADI Finechem, a speciality chemical manufacturer located near Ahmedabad (Gujarat), manufactures oleo chemicals used in the paints, inks and adhesives industries, as well as intermediate nutraceutical and health products. By leveraging its innovative process, ADI is able to convert readily-available agricultural waste products into value added specialty chemicals.
“We look forward to investing in ADI Finechem which, under the leadership of its managing director, Nahoosh Jariwala and his experienced management team, will continue to grow its operations over the long term. This investment fits within our strategy of investing in well-managed companies with a history of profitability and high integrity,” said Prem Watsa, chairman of Fairfax India.
Following this investment by Fairfax India, ADI Finechem will continue to operate independently under the leadership of Utkarsh Shah, the current chairman and Nahoosh Jariwala.
Nahoosh Jariwala commented, “We are extremely pleased to have Fairfax India as a committed long term investor as we are confident that we can continue to grow the business in the long term for the benefit of all stakeholders.”
Further, Fairfax India will also make an open offer for an additional 26 percent of the shares outstanding of ADI Finechem in accordance with applicable regulations of the Securities and Exchange Board of India (SEBI).
ADI Finechem, a speciality chemical manufacturer located near Ahmedabad (Gujarat), manufactures oleo chemicals used in the paints, inks and adhesives industries, as well as intermediate nutraceutical and health products. By leveraging its innovative process, ADI is able to convert readily-available agricultural waste products into value added specialty chemicals.
“We look forward to investing in ADI Finechem which, under the leadership of its managing director, Nahoosh Jariwala and his experienced management team, will continue to grow its operations over the long term. This investment fits within our strategy of investing in well-managed companies with a history of profitability and high integrity,” said Prem Watsa, chairman of Fairfax India.
Following this investment by Fairfax India, ADI Finechem will continue to operate independently under the leadership of Utkarsh Shah, the current chairman and Nahoosh Jariwala.
Nahoosh Jariwala commented, “We are extremely pleased to have Fairfax India as a committed long term investor as we are confident that we can continue to grow the business in the long term for the benefit of all stakeholders.”