Foseco has agreed to acquire 75% stake in Morganite Crucible (India) Limited for Rs. 653 crore, both companies said in separate stock exchange disclosures. The consideration for the stake purchase will be paid in stock. Morganite Crucibles promoters will get shares of Foseco.
ET had first reported about the deal discussions on 12 August.
“FIL is acquiring a 75.00% shareholding in MCIL the consideration for which shall be payable by FIL through issuing and allotting 1,150,800 fresh equity shares of FIL using a swap ratio of 274 FIL shares for every 1000 MCIL shares,” a statement from Foseco India Limited (FIL) said.
The proposed acquisition will also trigger a mandatory open offer by FIL to acquire up to 25.00% shareholding of Morganite Crucible India Limited from its public shareholders in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended from time to time.
Foseco is part of the $2.4 billion UK-headquartered Vesuvius which makes products for the steel and foundry casting industries. Foseco’s Indian entity is listed and is nearly 75% owned by the global parent.
Morganite Crucible is 75% owned by global entities of Morgan Advanced Materials. The rest of the shares are with public shareholders.
The company makes crucibles or containers that can withstand high temperatures and are used in the processing of ferrous and non-ferrous metals.
This proposed acquisition aligns with the larger acquisition of the worldwide molten metals systems business by the Vesuvius Group from the Morgan Group, as per Foseco’s filings to the stock exchange. The rationale for the proposed acquisition is to expand the Vesuvius Group’s Foundry business into the faster-growing non-ferrous market segment and to India, in line with the Group’s strategic ambitions.
JM Financial Limited acted as exclusive financial advisor to FIL for this transaction and is also manager to the open offer. Trilegal acted as FIL’s legal counsel. Deloitte acted as tax advisor and BDO and GT acted as independent valuers.
ET had first reported about the deal discussions on 12 August.
“FIL is acquiring a 75.00% shareholding in MCIL the consideration for which shall be payable by FIL through issuing and allotting 1,150,800 fresh equity shares of FIL using a swap ratio of 274 FIL shares for every 1000 MCIL shares,” a statement from Foseco India Limited (FIL) said.
The proposed acquisition will also trigger a mandatory open offer by FIL to acquire up to 25.00% shareholding of Morganite Crucible India Limited from its public shareholders in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended from time to time.
Foseco is part of the $2.4 billion UK-headquartered Vesuvius which makes products for the steel and foundry casting industries. Foseco’s Indian entity is listed and is nearly 75% owned by the global parent.
Morganite Crucible is 75% owned by global entities of Morgan Advanced Materials. The rest of the shares are with public shareholders.
The company makes crucibles or containers that can withstand high temperatures and are used in the processing of ferrous and non-ferrous metals.
This proposed acquisition aligns with the larger acquisition of the worldwide molten metals systems business by the Vesuvius Group from the Morgan Group, as per Foseco’s filings to the stock exchange. The rationale for the proposed acquisition is to expand the Vesuvius Group’s Foundry business into the faster-growing non-ferrous market segment and to India, in line with the Group’s strategic ambitions.
JM Financial Limited acted as exclusive financial advisor to FIL for this transaction and is also manager to the open offer. Trilegal acted as FIL’s legal counsel. Deloitte acted as tax advisor and BDO and GT acted as independent valuers.
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