UPL Ltd acquires entire stake in Kudos Chemie for Rs 237 crore
UPL Ltd would acquire entire holding of Kudos Chemie Limited, the former informed the exchanges on 15 June 2022.
UPL Ltd in the year 2020 had submitted a resolution plan to National Company Law Tribunal (“NCLT”) under Insolvency and Bankruptcy Code for revival of Kudos Chemie Limited, which was recently approved by the National Company Law Tribunal, Chandigarh Bench, Chandigarh.
“Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform that the Company has incorporated a wholly owned subsidiary in the name of UPL Speciality Chemicals Limited (USCL) which has acquired 100% holding in Kudos,” UPL Ltd said in an exchange filing.
USCL acquired 4 crore equity shares of Rs.10 each of Kudos for total consideration of Rs.40 crore.
Kudos did not carry out operations in last more than 5 years. Corporation Insolvency Resolution Process was initiated in 2018 against Kudos by consortium of financial creditors led by Punjab National Bank.
The resolution professional of Kudos Chemie admitted creditors claim worth Rs 4,207 crore – including Rs 3,697 crore from financial creditors.
As per the resolution plan approved by NCLT, UPL is required to invest Rs.237 crore in Kudos over a period of 2 years. Kudos acquisition helps UPL Ltd to offer various value-added products to its customers having synergy with its existing business.
Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has manufacturing facility near Chandigarh. Acquisition was done by USCL, the newly incorporated wholly owned subsidiary.
USCL is promoted by UPL Ltd as a wholly owned subsidiary and accordingly Kudos becomes a step down wholly owned subsidiary of the Company. Both become related parties of the Company on account of this investment. The promoter / promoter group / group companies do not have any direct / indirect interest in USCL / Kudos.
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