BASF board approves merger by absorption of BASF Performance Polyamides; stock tumbles

BASF Performance is engaged in the business of manufacture/trading of performance polyamides having one manufacturing site at Panoli, Gujarat.

Aug 27, 2020 02:08 IST India Infoline News Service

BASF India
BASF on Thursday said the board of directors have approved the scheme of a merger by absorption of BASF Performance Polyamides which is a wholly-owned subsidiary of the company. No consideration will be payable according to the merger of the subsidiary with BASF.

In its regulatory filing, BASF said, "The merger of BASF Performance Polyamides with the Company would strengthen the Company’s position as a solution provider for key industries & would enhance market access to key growth markets. It would help the Company in expanding its existing ‘Materials’ segment and extend value chain through backward integration into key raw materials."

It added, "The Polyamides business also has operational synergies with the Engineering Plastics business of the Company and merging BASF Performance Polyamides with the Company will ensure focused management thereby resulting inefficiency of management and maximizing value to the shareholders."

Notably, BASF Performance was originally incorporated as Rhodia Polymers & Specialties in January 2011 and is engaged in the business of manufacture/trading of performance polyamides having one manufacturing site at Panoli, Gujarat.

At around 2.47 pm, BASF was trading at Rs1605.95 per piece down 2.04% on Sensex. The stock has clocked an intraday low of Rs1,600 per piece. 

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