Shares of BASF India advanced 6.14 per cent to Rs 1,015.55 on the BSE on Monday after its parent company BASF, Germany signed a Purchase Agreement with an Affiliate of Lone Star, a global private equity player, for acquisition of BASF’s Construction Chemicals Business.
In an exchange filing, the company said the purchase price on a cash and debt free basis is EUR 3.17 billion, and is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities. READ STATEMENT HERE
At 10:08 am, the stock was trading 4.9 per cent higher at Rs 1,003.7 apiece. In comparison, the benchmark S&P BSE Sensex was at 41,662.52 levels, down 0.05 per cent. So far in calender year 2019, the stoch has underperformed the benchmark Sensex with a decline of 38 per cent till December 20, 2019. In contrast, Sensex advanced 15.5 per cent during the same period.
BASF’s Construction Chemicals business generated sales of about EUR 2.5 billion in 2018. In India, the construction chemicals business, which forms part of the Surface Technologies segment, has generated sales of Rs 484 crore for the year ended 31st March, 2019.
BASF’s construction chemicals unit is the world’s largest maker of additives for concrete. It also offers a range of substances including concrete repair fillers, grouts and sealants under a business dubbed Construction Systems, where BASF is the No. 4 player globally, news agency Reuters reported. BASF purchased the construction chemicals business from Degussa in 2006 for 2.7 billion euros including debt.
Earlier, in November, the company said it plans to double its capacity for polymer dispersions with a new production line at its site in Dahej, Gujarat. The Company had started the production of polymer dispersions in Dahej, Gujarat in October 2014 and currently operates one production line at the plant.
“The proposed investment will expand production capacity of dispersions for the construction, coatings, paper and adhesive markets and the enhanced production line will serve growing demand in South Asia, with operations beginning by 2021,” it said in a statement. READ HERE
Source: Maalaimalar
