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UPL announces acquisition of 80% stake in PT Excel Meg

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UPL on Thursday announced that UPL Global, a step-down subsidiary of company's subsidiary entered into a definitive agreement for acquisition of 80% stake of PT Excel Meg Indo - Indonesia.

PT Excel Meg Indo is engaged in the business of trading of agrochemicals and fertilizers in Indonesia. PTE achieved consolidated revenues of Indonesian Rupiah 330 billion (approx. $23 million) in calendar year 2020 and Indonesian Rupiah 271 billion ($ 19 million) in calendar year 2019.

PTE has a good presence in Indonesia, offering a wide range of agro-chemical products. The proposed acquisition will provide UPL with market access and access to product portfolio.

As per the terms of definitive agreement, PTE has been valued at an enterprise value of USD $25 million subject to customary price adjustment mechanism. UPL expects to complete acquisition of 80% stake by 31 December 2021.

The initial stake of 80% of equity shares shall be acquired upon closing. UPL said it also retains the right to acquire balance 20% stake by end of 2023 subject to the terms of agreement. The consideration shall be payable in cash, UPL added.

In a separate announcement, UPL said that it a meeting of the board of directors of the company is scheduled on Friday, 29 October to consider and approve the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2021.

Shares of UPL were trading 0.38% lower at Rs 713.50 on BSE. UPL is a global provider of sustainable agriculture products & solutions. Through OpenAg, UPL is focused on facilitating progress for the entire agricultural value chain.

UPL posted a 23% rise in consolidated net profit to Rs 678 crore on a 9% rise in revenue to Rs 8,515 crore in Q1 FY22 over Q1 FY21.

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

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First Published: Thu, October 21 2021. 14:53 IST