“The board approved the sale of Masterbatch Business to PolyOne Polymers India or its affiliate in India, on a going concern basis by way of slump sale for total consideration of Rs 426 crore,” Clariant Chemicals said in a regulatory filing.
The company said it signed agreement subject to the approval of the shareholders and all other applicable statutory approvals.
The amount of revenue contributed by Masterbatch Business unit is Rs 283 crore for the financial year 2018-19, which is 29 per cent of total revenue. While the unit contributed earnings before interest and tax (ebit) of Rs 4.57 crore for the last financial year, it added.
PolyOne Polymers India is wholly-owned subsidiary of PolyOne Corporation, a premier provider of specialized polymer materials, services and solution.
Last month, the board had approved the sale of business unit — Additives (BU - Additives) to Clariant India, a related party, on a going concern basis.
At 12:14 pm, Clariant Chemicals was up 11 per cent at Rs 353, as compared to a 0.20 per cent rise in the S&P BSE Sensex. A combined 279,920 equity shares changed hands on the counter on the NSE and BSE so far.