Linde India to sell south region investment biz to Air Water India on slump sale basis

The company has entered into a binding term sheet with Air Water India

Aug 14, 2019 07:08 IST India Infoline News Service

Shares of Linde India soared 7% in the afternoon session after the company has entered into a binding term sheet with Air Water India.

“The company has entered into a binding term sheet with Air Water India Private Limited and with Air Water Inc., a company incorporated under the laws of Japan (as a guarantor) in this regard and is taking necessary action to seek the approval of the CCI and the Shareholders in connection therewith,” as per filing.

The Competition Commission of India (CCI), at a meeting of the Board of Directors of the Company, held on August 12, 2019, the Board has subject to the approval of Shareholders of the Company and the CCI and subject to such other approvals as may be necessary, approved the sale/divestment of the "Company's South Region Divestment Business" comprising the business of producing, distributing and selling various industrial gases, viz. oxygen, nitrogen and argon from the Company's QSW- 2) 1800 tonnes per day onsite Air Separation plant located at Bellary, Karnataka.

The Company's cylinder filling stations located at Hyderabad and Chennai as more fully described in Schedule II of the Order on September 6, 2018 issued by the CCI, along with surplus land in Chennai and Hyderabad PGP sites and a decommissioned Air Separation Unit at Hyderabad site, all on a "slump-sale" and "as is where is basis" to Air Water India Private Limited, a company incorporated under the Companies Act, 2013 for an aggregate sale consideration of Rs1,380cr only.

Linde India Ltd is currently trading at Rs517.55, up by Rs33.05 or 6.82% from its previous closing of Rs484.50 on the BSE.

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