In the subsidiary, UPL will own 75% stake and Beijing Yoloo will hold 25% stake. The cost of acquisition is RMB 93,330,000 (USD 13.3 million).
The acquisition will require regulatory approval from Foreign Investment Commission at Laoting Country and Tangshan City level, registration with the Market Supervision and Administration Bureau at Laoting Country level and filing with the State Administration of Foreign Exchange at Laoting County Level.
Laoting Yoloo is engaged in the business of manufacturing, distribution and commercialization of crop protection products in China. China is one of the major crop protection chemical market and with this acquisition, UPL will strengthen its access in China market.
UPL will build on the relationships that Laoting Yoloo has cultivated by serving their existing customers with the wider portfolio of UPL products. With this acquisition, UPL will also have a formulation facility in China.
UPL Ltd is currently trading at Rs534.15, down by Rs1.35 or 0.25% from its previous closing of Rs535.50 on the BSE.
The scrip opened at Rs537 and has touched a high and low of Rs541.95 and Rs533.30 respectively.