Astec Lifesciences has received an approval for execution of a share purchase agreement, whereby the promoters of the company have agreed to sell 45.29% of the current paid-up equity shares of the company at a price of Rs 190 per share to Godrej Agrovet (GAVL). The board of directors at their meeting has approved for the same. Further, such share purchase agreement sets out certain shareholder rights and obligations between GAVL and the remaining promoters of the company.
Pursuant to the transaction, GAVL will make an open offer to the shareholders of the company under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 for which a public announcement under the said regulations will be made by GAVL separately.
The company will benefit from GAVL’s expertise and strong market position in agri-business. GAVL’s induction as a shareholder is expected to significantly enhance the company’s growth prospects and competitive position. The transaction is subject to various conditions precedent, which includes the sale of the equity shares held by the company of Astec Crop Care (ACCPL), a wholly owned subsidiary of the company.
