Tega Industries Limited has completed the acquisition of Molycop, a leading global supplier of grinding media for the mining industry, in consortium with funds managed by affiliates of Apollo. The transaction, which closed on June 01, 2026, was executed at an enterprise value of approximately USD 1.5 billion. This strategic move positions the combined business as one of the world's leading designers and manufacturers of critical-to-operate consumables for the mining, minerals processing, and material handling industries.

Transaction Structure and Financial Terms

The acquisition was structured through Tega MC Investment Pte. Ltd., a wholly owned subsidiary of Tega Industries, and AP Jupiter Holdco (SG) Pte. Ltd., representing the Apollo Funds. The key financial details of the transaction are outlined below:

The enterprise valuation was based on a "locked box" approach using the audited balance sheet of Molycop as of June 30, 2025. The sellers are entitled to a contingent payment of up to USD 120 million, payable within 45 months if Molycop achieves specified performance metrics.

Strategic Impact and Integration

With the transaction closed, Tega Industries is the controlling shareholder of Molycop, with the Apollo Funds owning a significant minority equity interest. The company's priority in the first 8 quarters will be operational and business integration. The addition of Molycop's 13 manufacturing facilities, along with 3 active joint ventures and 1 potential joint venture, brings the combined entity closer to its customers with a presence in 26 global manufacturing sites. Tega's established presence in Europe, the Middle East, the Commonwealth of Independent States, Latin America, and Africa will be bolstered by Molycop's activities in the US, Canada, Latin America, and Australia.

Financial and Operational Details

The Molycop group brings a comprehensive portfolio of products, including grinding media for semi autogenous grinding (SAG) mills and ball mills, which are critical to mineral extraction. The acquisition provides Tega Industries access to Molycop's global network, covering 400+ mines in 40 countries, and complementary patented products. The integration is expected to enhance the company's R&D capabilities and supply chain, allowing it to offer a complete basket of solutions covering the entire mining value chain.

Transaction Advisors

The transaction involved a distinguished set of advisors across legal, financial, and regulatory domains:

Tega Industries Limited has executed a rupee facility agreement with a consortium of lenders to secure funding of up to INR 1,500 Crores. The agreement was signed on May 22, 2026, with Standard Chartered Bank acting as the Sole Mandated Lead Arranger, Underwriter & Bookrunner, alongside Axis Bank Limited and Export-Import Bank of India. The facility is intended to finance the proposed acquisition of Molycop, a strategic move previously disclosed by the company on November 29, 2025, February 12, 2026, and May 18, 2026.

Facility Agreement Details

The borrowing arrangement is structured as a Term Loan Facility. As of the execution date, the total amount outstanding under the facility is Nil. The agreement includes the execution of ancillary security documents customary for financing arrangements of this nature. The facility will be secured by customary security interests, including mortgage, hypothecation, pledge, share charge, and non-disposal undertaking over certain identified assets of the company and its subsidiaries. These assets include immovable properties, movable and current assets, designated reserve account assets, and investments in identified subsidiaries.

Lender and Security Information

Catalyst Trusteeship Limited has been appointed as the Facility Agent for the transaction. The significant terms of the agreement include standard representations, warranties, covenants, undertakings, events of default, and mandatory prepayment provisions typical for such financing. The company confirmed that the lenders are not related to the promoter or promoter group, and the transaction does not fall within related party transactions.

Regulatory Disclosures

The intimation regarding the execution of the Facility Agreement was submitted to the stock exchanges on May 23, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosures were signed by Manjuree Rai, Company Secretary & Compliance Officer. The company has made the information available on its website and will continue to make necessary disclosures as per the SEBI Master Circular.