Foseco India, a part of the Vesuvius Group of companies, has executed a definitive agreement to acquire a 75% stake in Morganite Crucible (India) (MCIL), from its current promoters, viz. Morganite Crucible and Morgan Terrassen B.V., part of the Morgan Group of companies.
MCIL is the holding company for the Molten Metals Systems (MMS) business in India, a provider of high-tech crucibles, particularly for non-ferrous applications.
The acquisition is valued at ₹1,557 per share, translating into a total consideration of ₹653.94 crore.
FIL is acquiring a 75% 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.
The proposed acquisition will also trigger a mandatory open offer by FIL to acquire up to 25% shareholding of MCIL from its public shareholders in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended from time to time.
Ravi Kirpalani, Chairman of Foseco India, said, “This transaction will strengthen our business through offering the high-tech solutions that MMS brings. The expanded business will benefit from being part of the Group’s global Foundry business, enabling it to benefit from combined R&D capability and enhanced customer reach.”
