Market News
2 min read | Updated on June 27, 2024, 11:26 IST
SUMMARY
PI Industries acquisition: The company expects to complete the acquisition by the second quarter of FY2024-25 financial year.
Stock list
PI Industries to acquire UK-based Plant Health Care for ₹346 crore, shares rise up to 4%
PI Industries informed bourses that its board has approved a proposal to acquire Plant Health Care Plc in a cash deal.
“The offered purchase consideration of 32.8 million pounds is proposed to be paid in cash and funded from the earlier Qualified Institutional Placement (QIP) proceeds,” PI Industries said in a filing.
The company expects to complete the acquisition by the second quarter of FY2024-25 financial year.
PI Industries stated that the acquisition will help it gain access to the latest biological/peptide technology platforms in the ‘Plant Immunity Inducers’ space.
“Combining these with other available complementary technologies and an innovative pipeline of chemical products, PI will have a “double engine” to create a portfolio of innovative products that will feed into the well-oiled sales engines in India and key international markets,” the company said.
It added that Plant Health Care (PHC) has knowledge, products, IP, and experience in protein/ peptide technology in the agricultural biological space.
The UK-listed company, which has subsidiaries in the US, Brazil, Mexico and a few other countries, has a strong R&D base in the US. PHC products have good acceptance with growers in the US, Brazil, Europe, and Mexico. The company reported consolidated revenue of $11 million with a gross margin of 60% for the year ended December 31, 2023.
PI Industries shares rose 4% on the NSE after the announcement of the acquisition. The stock opened higher and touched a high of ₹3,950 on NSE in early trade, up 4.6% over the previous close. More than 3 lakh shares of the company changed hands on the bourse.
The stock was trading 3.2% higher at ₹3,900 at 11.15 AM.
PI Industries shares have rebounded around 20% from the 52-week low level of ₹3,220 per share hit on January 25, 2024. The stock has gained around 11% in 2024 so far.
About The Author
Next Story