GMM Pfaudler Ltd ('GMMP') has announced that it will increase its stake in GMM International S.à.r.l ('GMMI') to 100% by acquiring the balance 46% stake i.e., 26% held by Millars Concrete Technologies Pvt. Ltd. (Patel family) and 20% held by Pfaudler International S.à.r.l (which is controlled by funds managed by Deutsche Beteiligungs AG under DBAG Fund VI). With this transaction, GMMI will become a wholly owned subsidiary of GMMP.
The proposed acquisition will be subject to the approval of the Secretary of State for Business, Energy and Industrial Strategy, United Kingdom and the public shareholders of the Company.
- Total consideration of ₹ 344 crore to be paid in cash and equity shares
- Simplified shareholding structure
- EPS accretive (~12% LTM June 2022)
- Earlier than expected improvement in business performance, record high backlog and strong outlook
- No integration risks with synergies gaining momentum
- Recent acquisition and joint venture will further improve business performance
Speaking about the acquisition, Mr. Tarak Patel, Managing Director said, "Our international business is now fully integrated and our expected efficiency levels are playing out in terms of growth and margins. Therefore, this is a natural conclusion to our original transaction by which we are completely consolidating the shareholding to fully accrue earnings and synergies."
He further added, "The Patel family reiterates its commitment to the business by increasing our stake through this transaction."
Shares of GMM Pfaudler Limited was last trading in BSE at Rs. 1604.75 as compared to the previous close of Rs. 1668.25. The total number of shares traded during the day was 34504 in over 3954 trades.
The stock hit an intraday high of Rs. 1718.00 and intraday low of 1589.30. The net turnover during the day was Rs. 56534531.00.