PG Eectroplast arm inks pact to acquire 100% stake in NGM

PG Eectroplast (PGEL) said that its wholly owned subsidiary, PG Technoplast has enetered into definitive agreement to acquire 100% stake in Next Generation Manufacturers (NGM).

Next Generation Manufacturers is engaged in the business of manufacturing consumer durable products / home appliances, air conditioners and televisions. Turnover was Rs 5.06 crore in FY 2022-23.

The company will acquire 100% shareholding consisting of 10,000 equity shares of Rs 10 each and 1,50,000 0% compulsorily convertible debentures of Rs 1,000 each.

The subsidiary will acquire NGM to avail physical infrastructure (Land, Building, Plant & Machinery), acquire manufacturing business of NGM for growth and expansion and to become a preferred outsourcing vendor for consumer durables and electronics business of Amstrad Brand. After acquisition, NGM will become a wholly owned subsidiary of PGTL.

Post-Closing, PGTL shall be a preferred vendor to Amstrad for Air Conditioners, Washing Machines, and Televisions being outsourced by Amstrad, and PGTL shall have the first right of refusal for the above-stated items.

PG Electroplast manufactures printed circuit board assemblies, plastic injection mouldings for major consumer durables, specialised AC components, home electricals and kitchen appliances. The company caters to industries such as automotive components, consumer electronics mobile handsets and sanitary ware.

The scrip rose 0.495 to Rs 2000.70 on Friday, 9 February 2024.

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