Elgi Rubber Company has received an approval for acquisition of Parani Steels and American Manufacturing and Equipment. The board of directors at their meeting held on January 13, 2015 has approval for the same. The said acquisitions would be completed before January 31, 2015.
The board approved acquisition of the entire share capital of Parani Steels, an ISO 9001:2008 medium scale heavy fabrication unit having its Registered Office at Chennai. The acquisition is subject to various regulatory / contractual clearance and permissions. The infrastructure of the target company can be used for expanding the business of the company to its advantage. The board has approved the Share Purchase Agreement setting out the broad terms and conditions of the proposed acquisition. The enterprise value of the acquisition has been agreed at a value not exceeding Rs 30 crore.
Further, the company received approval for acquisition of the entire share capital of American Manufacturing and Equipment, INC., USA by company’s wholly owned subsidiary Elgi Rubber Company LLC, USA subject to various regulatory / contractual clearance and permissions. The acquisition of this retread equipment manufacturing company will enable Elgi Rubber Company LLC, USA to be a key player in this segment in USA.
The board has approved the Share Purchase Agreement proposed to be entered into by Elgi Rubber Company LLC, USA the wholly owned subsidiary of the company, setting out the broad terms and conditions of the proposed acquisition. The enterprise value of the acquisition has been agreed at a value not exceeding $2 million.
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