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PI Industries firms up after acquisition

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PI Industries advanced 1.27% to Rs 1,258 after the company executed an offer for acquisition of 100% stake in Isagro (Asia).

PI Industries (PI) has executed an offer with Isagro S.p.A (a company incorporated in Italy, the promoter and existing shareholder of Isagro Asia) for acquisition of the business of Isagro Asia, who are engaged in contract manufacturing, local distribution and exports of agrochemicals through acquisition of 100% shareholding of Isagro Asia. The business will be acquired by PI directly or through its subsidiary.

The transaction value is estimated Rs 345 crore net of cash and debt subject to closing adjustments.The consummation of the proposed transaction is expected in Q3FY20 subject to finalisation of definitive agreements, customary closing conditions and regulatory approvals. The parties have entered into exclusivity agreement for this purpose. PI sees encouraging growthopportunities across its business model and seeking initiatives to augment business progress.

The proposed acquisition will provide PI access to additional manufacturing capacities to meet growing demand of global customers and synergy benefits of adjacent manufacturing site while de-risking the supply chain of few products. In addition, this will also help PI strengthen its position in Indian market by leveraging complementary product portfolio and distribution channel of Isagro Asia.

On BSE, 1,424 shares were traded in PI Industries counter, compared to a 2-week average of 39,000 shares. The stock hit an intraday high of Rs 1,275 and an intraday low of Rs 1245.

It hit a 52-week high of Rs 1,298 on 11 September 2019 and a 52-week low of Rs 691.80 on 1 October 2018.

PI Industries' consolidated net profit rose 23.6% to Rs 101.60 crore on 24.5% surge in net sales to Rs 754.10 crore in Q1 June 2019 compared with Q1 June 2018.

PI Industries is a holding company. The company is engaged in the manufacturing and distribution of agro chemicals. The firm manufactures agrochemicals, plant nutrients and plant protection, specialty fertilizers and hybrid seeds.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 13 2019. 10:16 IST