Greenlam Industries to fully acquire HG Industries to set up manufacturing facilities and business expansion

HGIL currently does not have any manufacturing operations and is engaged in the activities of renting and/or leasing immovable properties.

Aug 30, 2021 01:08 IST India Infoline News Service

Greenlam Industries board of directors have approved the acquisition of 34, 70,966 equity shares representing 74.91% of the voting share capital of HG Industries Limited ("HGIL") (Formerly Himalaya Granites Limited) for Rs40.11 per equity share from Saurabh Mittal, Parul Mittal, Shiv Prakash Mittal and S.M. Safeinvest Private Limited, who are part of the promoter and promoter group of HGIL.

Further, the board approved an open offer that is to be made for the acquisition of the entire public shareholding of HGIL up to 11,62,602 equity shares of HGIL representing 25.09% of the voting share capital of HGIL for Rs41.00 per equity share. The open offer's indicative date is fixed on November 23, 2021.

DAM Capital Advisors is appointed as the Manager of the Open Offer.

Upon the consummation of the Proposed Acquisition and the Open Offer, the Company will acquire control over HGIL and HGIL will become a subsidiary of the Company.

In its regulatory filing, Greenlam said that the objective of the acquisition is to set up manufacturing facilities on the properties of HGIL and expansion of business of the Company. In addition, the Company may also consider disposing of the office space of HGIL. Further, the Acquirer may, subject to applicable law, also consider the merger of HGIL with Acquirer post the completion of the Open Offer and consummation of the Proposed Acquisition in terms of the SPA.

HGIL currently does not have any manufacturing operations and is engaged in the activities of renting and/or leasing immovable properties. Further, HGIL is exploring to venture into, all or any, of the business of manufacturing, marketing and trading of wood and paper-based products.

At around 1.14 pm, Greenlam was trading at Rs1365 per piece marginally up on Sensex. 

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